When Companies Accumulate Much Expertise in Knowledge or Technology-Intensive and Need

question 67

Multiple Choice

When companies accumulate much expertise in knowledge or technology-intensive and need to leverage this expertise globally to maintain it, this is an example of what type of cost driver:

• A) Favorable logistics
• B) Low cost production
• C) New product development costs
• D) Experience curve effects

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Definitions:

Electronic Transfer

The digital exchange of money between accounts, which can occur within the same financial institution or across different institutions.

Marketable Securities

Financial instruments and assets that can be easily sold or converted into cash, often used for short-term investments or liquidity purposes.

Operating Assets

Operating assets are the assets that a business uses to generate revenue as part of its core operations, excluding investments and cash reserves.

Current Asset

An asset on the balance sheet that is expected to be sold or otherwise used up in the near term, typically within one year, including cash, inventory, and receivables.