Reduction in production cost results in ________.
A) better customer service
B) lower shareholder value
C) increased profitability
D) increased competition
E) increased process complexity

Question

Quizplus · Accepted Answer

Reduction in production cost results in increased profitability, as the company can sell its products at a lower price while maintaining the same profit margin, or increase the profit margin while keeping the same price.

Answer: D and E are not valid because they do not necessarily follow from the given scenario. A and B are not valid because they do not make logical sense in relation to the question.

Reduction in Production Cost Results in ________