CAT Verbal Ability Questions | CAT Para Summary questions
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FundaMakers brings you all the questions of Para Summary asked in the Previous Year CAT Exams. CAT question bank offered by FundaMakers is a topic-wise compilation of all the CAT previous year questions. Questions from the Para Summary are some of the most scoring questions in the VARC section. Other than formulaic knowledge it also tests your clarity about the topic. To maximize your CAT score make use of FundaMakers CAT Question Bank. Let get started with CAT Past Year Para Summary Questions.
CAT/2003
Question . 62
Four alternative summaries are given below each text. Choose the option that best captures the essence of the text.
It is important for shipping companies to be clear about the objectives for maintenance and materials management - as to whether the primary focus is on service level improvement or cost minimization. Often when certain systems are set in place, the cost minimization objective and associated procedure become more important than the flexibility required for service level improvement. The problem really arises since cost minimization tends to focus on out-of-pocket costs which are visible, while the opportunity costs, often greater in value, are lost sight of.
Explanatory Answer
Method of solving this CAT Verbal Ability Question from Para Summary question
(d) is the only option feasible because the passage refers to the primary focus being on quality level improvement? The passage also mentions that cost-cutting tends to focus on out-of-pocket costs that are visible rather than opportunity costs which are greater in value.