The First Unit of a Product Took 50 Hours to Build

question 44

Multiple Choice

The first unit of a product took 50 hours to build, and the learning curve is 80%. How long will it take to make the third unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

• A) under 30 hours
• B) about 32 hours
• C) about 35 hours
• D) about 50 hours
• E) about 75 hours

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Definitions:

Subsidiary Ledger

A detailed ledger that contains the breakdown of individual accounts, which supports the balances shown in the general ledger.

Control Accounts

Summary accounts in the general ledger that consolidate the details recorded in subsidiary ledgers for management and reporting purposes.

Accounting System

A system used by businesses for tracking their financial transactions, consisting of various processes, records, and reports.