All of the Following Are True About Experience Curves Except

question 95

Multiple Choice

All of the following are true about experience curves except for

• A) Applicable primarily to differentiation strategies
• B) Applicable primarily to cost leadership strategies
• C) Reflect declining average unit costs due to increasing accumulated production levels
• D) Reflect both economies of scale and the introduction of more efficient production methods as output increases
• E) Often found in commodity-type industries

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Definitions:

Special Journals

Accounting journals designed for recording a particular type of transaction in a more efficient manner.

Cash Payments Journal

A specialized accounting journal used to record all cash outlays of a business, including expenses, asset purchases, and debt payments.

Purchases Journal

A record of all purchase transactions for inventory, usually on credit, maintained by a business.

Credit Balance

A situation in accounting where the total credits in an account exceed the total debits, commonly seen in liability accounts.