When companies accumulate much expertise in knowledge or technology-intensive and need to leverage this expertise globally to maintain it, this is an example of what type of cost driver:
A) Favorable logistics
B) Low cost production
C) New product development costs
D) Experience curve effects

Question

Quizplus · Accepted Answer

Experience curve effects refer to the reduction in per-unit production costs that occur over time as a company gains experience and expertise in production and operations. When companies accumulate significant expertise in knowledge or technology-intensive areas and need to leverage this expertise globally to maintain their competitive edge, they are benefiting from experience curve effects. This is because their accumulated knowledge and efficiencies allow them to produce at lower costs as they continue to learn and improve their processes.

When Companies Accumulate Much Expertise in Knowledge or Technology-Intensive and Need