A 90% Learning Curve Implies That Each Time the Production

question 50

True/False

A 90% learning curve implies that each time the production volume is doubled, the direct time per unit is reduced to 90% of its previous value.

---

Definitions:

Relevant Range

It refers to the span of activity within which the assumptions about fixed and variable cost behaviors hold true.

Contribution Margin

The amount of revenue left after deducting all variable costs associated with producing and selling a product, indicating how much contributes towards covering fixed costs and generating profits.

University Store

Not specific enough to provide a definition without context but generally refers to a retail outlet or bookstore operated by or on behalf of a college or university.

Sunk Cost

An expense that has been paid and cannot be retrieved.