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Amazing Chips Ltd., a snacks manufacturing company located in Delhi, as of now sells its products in the Delhi and NCR region only. Since the company had been doing quite well for the last three years, the management is thinking of expanding the business pan India. To ensure that the expansion plan would be profitable, the management decided to undertake a cost benefit analysis.
Which are the factors that the management must consider for their cost-benefit study?
I. Operations and Logistics Cost
II. Marketing Expense
III. Only Local Competition in the new cities
IV. Both Local and National competition
V. Working Capital
VI. New factory
VII. Human Resources
V III . Price
- a)I, II, IV, V, VII, VIII
- b)I, II, VI, V, VII, VIII
- c)I, II, III, IV, VI, VII
- d)I, II, III, IV, V, VII
- e)All the factors would need to be considered
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Amazing Chips Ltd., a snacks manufacturing company located in Delhi, a...
Solution: Let’s take a look at all the factors one by one - Operations and Logistics Cost - The production would need to be increased so the operations cost will need to be considered. Logistics costs come into the picture as goods are being transported all across the country. So, I is definitely a part of the study. This we can know from the options as well.Similarly, to create awareness about the product among the public, the company would need to incur additional marketing costs. So, II is also a part of the study. This we can know from the options as well.Since the company is planning to expand pan India, they will need to consider both the local competitors of each city and also the National competitors - companies that sell pan India. Hence, between III and IV, IV is the right choice.
Since the manufacturing quantity would increase, the company’s working capital requirements will also increase. They will need to consider the same in the cost-benefit analysis.
A new factory is not an immediate need for the company. In fact, they should think of it only after they’ve established themselves in a few cities. Thus, this will come at a later stage.
Human resources would have to be factored in as they may need to hire more people to do sales and marketing for them pan India; additionally they may also need to hire in other departments like operations to cater to the increasing work load. The company may need to revise their price depending on the additional expenses and taxes that will be incurred with the business expansion.
Thus, the factors that need to be considered are I, II, IV, V, VII, VIII.
Hence, the correct answer is option 1.
Since the manufacturing quantity would increase, the company’s working capital requirements will also increase. They will need to consider the same in the cost-benefit analysis.
A new factory is not an immediate need for the company. In fact, they should think of it only after they’ve established themselves in a few cities. Thus, this will come at a later stage.
Human resources would have to be factored in as they may need to hire more people to do sales and marketing for them pan India; additionally they may also need to hire in other departments like operations to cater to the increasing work load. The company may need to revise their price depending on the additional expenses and taxes that will be incurred with the business expansion.
Thus, the factors that need to be considered are I, II, IV, V, VII, VIII.
Hence, the correct answer is option 1.
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Amazing Chips Ltd., a snacks manufacturing company located in Delhi, as of now sells its products in the Delhi and NCR region only. Since the company had been doing quite well for the last three years, the management is thinking of expanding the business pan India. To ensure that the expansion plan would be profitable, the management decided to undertake a cost benefit analysis.Which are the factors that the management must consider for their cost-benefit study?I. Operations and Logistics CostII. Marketing ExpenseIII. Only Local Competition in the new citiesIV. Both Local and National competitionV. Working CapitalVI. New factoryVII. Human ResourcesV III . Pricea)I, II, IV, V, VII, VIIIb)I, II, VI, V, VII, VIIIc)I, II, III, IV, VI, VIId)I, II, III, IV, V, VIIe)All the factors would need to be consideredCorrect answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Amazing Chips Ltd., a snacks manufacturing company located in Delhi, as of now sells its products in the Delhi and NCR region only. Since the company had been doing quite well for the last three years, the management is thinking of expanding the business pan India. To ensure that the expansion plan would be profitable, the management decided to undertake a cost benefit analysis.Which are the factors that the management must consider for their cost-benefit study?I. Operations and Logistics CostII. Marketing ExpenseIII. Only Local Competition in the new citiesIV. Both Local and National competitionV. Working CapitalVI. New factoryVII. Human ResourcesV III . Pricea)I, II, IV, V, VII, VIIIb)I, II, VI, V, VII, VIIIc)I, II, III, IV, VI, VIId)I, II, III, IV, V, VIIe)All the factors would need to be consideredCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amazing Chips Ltd., a snacks manufacturing company located in Delhi, as of now sells its products in the Delhi and NCR region only. Since the company had been doing quite well for the last three years, the management is thinking of expanding the business pan India. To ensure that the expansion plan would be profitable, the management decided to undertake a cost benefit analysis.Which are the factors that the management must consider for their cost-benefit study?I. Operations and Logistics CostII. Marketing ExpenseIII. Only Local Competition in the new citiesIV. Both Local and National competitionV. Working CapitalVI. New factoryVII. Human ResourcesV III . Pricea)I, II, IV, V, VII, VIIIb)I, II, VI, V, VII, VIIIc)I, II, III, IV, VI, VIId)I, II, III, IV, V, VIIe)All the factors would need to be consideredCorrect answer is option 'A'. Can you explain this answer?.
Amazing Chips Ltd., a snacks manufacturing company located in Delhi, as of now sells its products in the Delhi and NCR region only. Since the company had been doing quite well for the last three years, the management is thinking of expanding the business pan India. To ensure that the expansion plan would be profitable, the management decided to undertake a cost benefit analysis.Which are the factors that the management must consider for their cost-benefit study?I. Operations and Logistics CostII. Marketing ExpenseIII. Only Local Competition in the new citiesIV. Both Local and National competitionV. Working CapitalVI. New factoryVII. Human ResourcesV III . Pricea)I, II, IV, V, VII, VIIIb)I, II, VI, V, VII, VIIIc)I, II, III, IV, VI, VIId)I, II, III, IV, V, VIIe)All the factors would need to be consideredCorrect answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Amazing Chips Ltd., a snacks manufacturing company located in Delhi, as of now sells its products in the Delhi and NCR region only. Since the company had been doing quite well for the last three years, the management is thinking of expanding the business pan India. To ensure that the expansion plan would be profitable, the management decided to undertake a cost benefit analysis.Which are the factors that the management must consider for their cost-benefit study?I. Operations and Logistics CostII. Marketing ExpenseIII. Only Local Competition in the new citiesIV. Both Local and National competitionV. Working CapitalVI. New factoryVII. Human ResourcesV III . Pricea)I, II, IV, V, VII, VIIIb)I, II, VI, V, VII, VIIIc)I, II, III, IV, VI, VIId)I, II, III, IV, V, VIIe)All the factors would need to be consideredCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amazing Chips Ltd., a snacks manufacturing company located in Delhi, as of now sells its products in the Delhi and NCR region only. Since the company had been doing quite well for the last three years, the management is thinking of expanding the business pan India. To ensure that the expansion plan would be profitable, the management decided to undertake a cost benefit analysis.Which are the factors that the management must consider for their cost-benefit study?I. Operations and Logistics CostII. Marketing ExpenseIII. Only Local Competition in the new citiesIV. Both Local and National competitionV. Working CapitalVI. New factoryVII. Human ResourcesV III . Pricea)I, II, IV, V, VII, VIIIb)I, II, VI, V, VII, VIIIc)I, II, III, IV, VI, VIId)I, II, III, IV, V, VIIe)All the factors would need to be consideredCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Amazing Chips Ltd., a snacks manufacturing company located in Delhi, as of now sells its products in the Delhi and NCR region only. Since the company had been doing quite well for the last three years, the management is thinking of expanding the business pan India. To ensure that the expansion plan would be profitable, the management decided to undertake a cost benefit analysis.Which are the factors that the management must consider for their cost-benefit study?I. Operations and Logistics CostII. Marketing ExpenseIII. Only Local Competition in the new citiesIV. Both Local and National competitionV. Working CapitalVI. New factoryVII. Human ResourcesV III . Pricea)I, II, IV, V, VII, VIIIb)I, II, VI, V, VII, VIIIc)I, II, III, IV, VI, VIId)I, II, III, IV, V, VIIe)All the factors would need to be consideredCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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