Question

Which of the following condition reduces the production cost of material per unit?

• A. Minimizing resource waste
• B. Producing more with increased inputs
• C. Producing more with the same inputs
• D. Eliminating idle time

Answer 1

Answer:

C. Producing more with the same inputs

To reduce production cost per unit, we must increase production with the same inputs. Minimizing resource waste increases efficiency and is good for the environment. Eliminating idle time increases production but doesn't affect cost per unit. Cost of production per unit = (Cost of Production)/(Number of products produced)