Step 1: Recall the application of bucket wheel excavators.
Bucket wheel excavators are continuous excavation machines widely used in large-scale surface mines.
Step 2: Identify their operating modes.
They are capable of performing both
\[
\boxed{\text{Drop cut}}
\]
and
\[
\boxed{\text{Terrace cut}}
\]
operations.
Hence,
\[
\boxed{\text{Bucket wheel excavator}}
\]
is the correct answer.
Therefore,
\[
\boxed{(D)}
\]
is the correct answer.