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

Question

Quizplus · Accepted Answer

When production cost is reduced, it often results in increased profitability because the cost savings can increase the company's margins on products or services sold. This in turn can increase the company's overall profitability. A reduction in production cost may or may not lead to better customer service, depending on how the cost savings are used. It may also not necessarily lead to lower shareholder value or increased competition.

Reduction in Production Cost Results in ________