Which is a correct way to reduce cost in business?
Answer and explanation
Correct answer: Using resources properly
Using materials, labour, time, energy, and money efficiently can reduce waste and lower the cost per unit without abandoning responsible quality. Cost reduction should come from better planning, process improvement, and control, not from deception or destroying records. Completely lowering quality may drive customers away. Thus, proper resource use is the sound method and A is correct.
Frequently asked questions
What is the correct answer to this question?
Using resources properly
Why is this the correct answer?
Using materials, labour, time, energy, and money efficiently can reduce waste and lower the cost per unit without abandoning responsible quality. Cost reduction should come from better planning, process improvement, and control, not from deception or destroying records. Completely lowering quality may drive customers away. Thus, proper resource use is the sound method and A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
