Which Two Comments Accurately Explain What the Experience Curve Predicts

question 42

Multiple Choice

Which two comments accurately explain what the experience curve predicts will happen as an organisation undertakes any activity?

• A) Costs can be increased.
• B) The organisation develops competences in the activity.
• C) Staff training needs increase to ensure that suitable experience is available.
• D) The organisation becomes more efficient at the activity.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, carrying voting rights and potential for dividends.

Par Value

The nominal or face value of a stock or bond, as stated by the issuer.

Fair Value

An estimate of the market value of an asset or liability, based on current conditions and agreed upon by both buyer and seller.

Goodwill

Goodwill is an intangible asset that arises when a company acquires another company for a premium value, representing elements such as brand reputation, customer relations, and intellectual property.