The Learning Curve Rate Is

question 28

Multiple Choice

The learning curve rate is

• A) the percentage of time it will take to make each unit when the production rate doubles
• B) the log-log of the annual rate change divided by the average unit cost
• C) always based on constant value dollars
• D) only considered valid after one year of data is accumulated
• E) always equal to at least 75%

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Definitions:

Fixed Asset

A long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

Intangible

Assets that lack physical substance but hold value for a firm, such as patents, trademarks, and goodwill.

Commercial Substance

An aspect of transactions indicating that it will result in a significant change in the economic circumstances of the participating entities.

Realized Gain

The profit earned from the sale of an asset, calculated as the difference between the asset's sale price and its original purchase price.