Question

Mechanico is a manufacturing plant and has been in operation for more than twenty years. It now needs to invest in a warehouse to store its finished products. What are the costs that Mechanico can foresee as part of the cost?
A. 

insurance of the premises

B. 

machine repair due to breakage

C. 

natural disaster

D. 

labor strike

​

Answer 1

All buildings at a company will need to have insurance. This is a required expense. There is no indication in the question that there will be machinery in this storage facility, so the answer cannot be machine repair. You can NEVER predict natural disasters, so the answer cannot be C. There is also no indication that the workers are unhappy with this move therefore we cannot assume there will be a labor strike. The logical answer is A. insurance of the premises.

Answer 2

yes he is right the answer is A