Which of the Following Is a Limitation of the Use

question 24

Multiple Choice

Which of the following is a limitation of the use of learning curves?

• A) Change in personnel, design, or procedure leave the learning curve unchanged.
• B) Learning curves are applicable to services as well as to manufacturing.
• C) The culture of the workplace may alter the learning curve.
• D) Direct labor and indirect labor follow the same learning curves.
• E) Applications of learning curves are of tactical, not strategic, importance.

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Definitions:

Receivable Turnover Ratio

A measure of how efficiently a company collects its accounts receivable, calculated by dividing net credit sales by average accounts receivable.

Inventory Turnover Ratio

A metric that calculates the number of times inventory is sold or consumed in a given time frame, reiterating the effciency of inventory management.

Quick Ratio

Quick ratio, also known as acid-test ratio, is a liquidity metric that indicates a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.