Historically, the Term _____ Applies to the Reduced Direct-Labor Requirement

question 17

Multiple Choice

Historically, the term _____ applies to the reduced direct-labor requirement per unit of output because of the effects of learning, while the term _____ refers to the longer-term factors of production that systematically reduce production costs.

• A) learning curve….experience curve
• B) learning curve….infinity curve
• C) experience curve….Boeing curve
• D) experience curve….learning curve
• E) None of the above.

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Definitions:

Capital Spending

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Retained Earnings

The part of net profits not distributed as dividends, instead kept by the company for reinvestment in its main business or for debt repayment.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

Price-Earnings Ratio

A valuation metric for a company, calculated by dividing the market price per share by the earnings per share.