The Industry Life Cycle

question 30

Multiple Choice

The industry life cycle:

• A)Exists on a different scale of time than the product life cycle
• B)Follows exactly the main product life cycle
• C)Is the same duration as the product life cycle
• D)May never enter a Decline phase, in some cases

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Definitions:

Machine Hour

A machine hour is a unit of measure that represents the operation of a machine for one hour, used in allocating manufacturing costs based on time.

Least-squares Regression

Least-squares regression is a statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed and predicted values.

Variable Cost

A cost that changes in proportion to changes in the volume of activity, such as materials and labor directly involved in producing a product.

Machine Hour

A measurement of productive time, indicating how many hours a particular machine or piece of equipment has been operated.