A company that follows a low-cost strategy could reasonably be expected to reduce costs by:
A)broadening the business processes.
B)adopting lean production and flexible manufacturing technologies.
C)implementing first-in-first-out inventory control systems.
D)taking steps to increase customer chum.
E)abandoning economies of scale and learning effects.

Question

Quizplus · Accepted Answer

A low-cost strategy aims to offer products or services at lower prices than competitors while maintaining profitability. Adopting lean production and flexible manufacturing technologies can help to reduce costs by eliminating waste, streamlining processes, and increasing efficiency without sacrificing quality. Broadening business processes or implementing first-in-first-out inventory control systems may not necessarily lead to cost reductions, and taking steps to increase customer churn would be counterproductive. Abandoning economies of scale and learning effects would also be counterproductive as these are key components of cost reduction strategies.

A Company That Follows a Low-Cost Strategy Could Reasonably Be