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Question 58

Higher throughput operations enable private warehouses to:

    Correct Answer: B

    Higher throughput operations enable private warehouses to spread out fixed costs over large output volumes. Fixed costs are costs that do not change with the level of production or output in the short term, such as rent, salaries of permanent staff, and equipment depreciation. When a warehouse can process a higher volume of goods, these fixed costs can be distributed across a more substantial number of units, effectively reducing the fixed cost per unit. This increases the efficiency and utilization of the facility.

Discussion
DarkStryderOption: B

Answer should be B.

mickymice10Option: B

why not B?