Which of the following does not allow a company to reduce unit costs?
A) Outsourcing some functions to low-cost foreign suppliers
B) Customizing the product to meet local requirements
C) Realizing location economies
D) Pushing its suppliers to outsource some functions to low-cost foreign suppliers
E) Performing an activity at the lowest-cost location

Question

Quizplus · Accepted Answer

Customizing the product to meet local requirements may increase the unit costs by adding additional expenses for research, development, and production. In contrast, the other choices may lead to reducing unit costs by taking advantage of economies of scale, leveraging low-cost resources, and optimizing the production process.

Which of the Following Does Not Allow a Company to Reduce