Which of the Following Are Scale-Based Low Cost Advantages

question 44

Multiple Choice

Which of the following are scale-based low cost advantages?

• A)Experience curves.
• B)Proprietary technology.
• C) Favorable access to raw materials and distribution channels.
• D) Favorable locations.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Indirect Cost

Expenses not directly tied to the production of goods or services, such as administration, rent, and utilities.

Manufacturing Overhead

This encompasses all the indirect costs associated with the manufacturing process, including utilities, depreciation, and salaries for non-direct labor.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.