How do companies that reduce waste, recycle, and operate efficiently typically impact their costs?

• A. They experience unpredictable changes in costs with no clear pattern.
• B. Their costs remain unchanged because efficiency does not affect expenses.
• C. They decrease their costs by using resources more efficiently.
• D. They increase their costs due to higher spending on recycling programs.

Answer: (C)

Verified step by step guidance

1. Understand the relationship between efficiency and costs: When companies reduce waste, recycle, and operate efficiently, they are using their resources more effectively, which typically leads to cost savings.
2. Recognize that reducing waste means less material is wasted, so the company spends less on raw materials, directly lowering variable costs.
3. Recycling can reduce the need to purchase new materials, which also helps in cutting down costs associated with inputs.
4. Operating efficiently often involves optimizing processes, reducing energy consumption, and minimizing downtime, all of which contribute to lower operational costs.
5. Therefore, by combining these practices, companies generally decrease their costs by using resources more efficiently rather than experiencing unpredictable changes or increased costs.