The Fundamental Premise Underlying Learning Curve Analysis Is That

question 26

Multiple Choice

The fundamental premise underlying learning curve analysis is that

• A) tasks can be easily learned in organizations.
• B) organizations and people become better at their tasks as the tasks are repeated.
• C) learning takes place when people in organizations change.
• D) total labour costs decrease as the number of production units increases.
• E) doubling output cuts labour requirements per unit in half.

---

Definitions:

Balance Sheet

A statement detailing an organization's assets, liabilities, and owners' equity on a certain date.

Sales On Account

Transactions in which a customer purchases goods or services but payment is delayed, typically recorded as receivables on the seller's balance sheet.

Cost Of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, by comparing current assets to current liabilities.