The cost reduction to be achieved through the experience curve effect relates primarily to labor costs saved as a result of reduction in production time.

Question

Quizplus · Accepted Answer

The experience curve effect refers to the reduction in cost per unit of production as a result of increased experience in manufacturing or other processes. This reduction in cost is primarily due to improvements in efficiency, which can result in savings in labor costs by reducing production time. Therefore, the statement is true.

The Cost Reduction to Be Achieved Through the Experience Curve