Which One of the Following Statements About Learning Curves Is

question 81

Multiple Choice

Which one of the following statements about learning curves is TRUE?

• A) A learning curve assumes that the direct labor requirements per unit will DECREASE at an INCREASING rate as cumulative production increases.
• B) A larger learning curve rate implies faster (greater) learning.
• C) A learning curve graph usually follows a negative exponential curve.
• D) Learning curves can be used only for individuals, not for the whole organization.
• E) The formula describing the learning curve principle of doubling is computed differently when computing unit cost as opposed to unit time.

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Definitions:

Cash Break-Even

The point at which a company's cash inflows match its cash outflows, indicating no net gain or loss.

Fixed Costs

Costs that do not vary with the level of production or sales, remaining constant regardless of business activity levels.

Financial Break-Even

The point at which a project or company generates enough revenue to cover its operating and financial expenses.

Variable Costs

Costs that vary directly with the level of production or volume of output, such as materials and labor directly involved in a company's manufacturing process.