One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.Experience effects are achieved by ____________.
A) repeating a process until a task becomes easier
B) hiring more experienced personnel
C) spreading out a given expense or investment over a greater volume
D) competing in an industry for a long time

Question

Quizplus · Accepted Answer

Key to an overall cost leadership strategy is the experience curve, which refers to how business learns to lower costs as it gains experience with production processes. With experience, unit costs of production decline as output increases in most industries.

One Aspect of Using a Cost Leadership Strategy Is That