Learning Curves Can Be Applied to a Variety of Purposes

question 52

Multiple Choice

Learning curves can be applied to a variety of purposes internal to a firm, including:

• A) labor forecasting.
• B) scheduling.
• C) establishing costs.
• D) establishing budgets.
• E) all of these

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Definitions:

Variable Overhead

The costs that fluctuate with the level of production or business activity, such as utilities or materials.

Variable Costing

A pricing approach that incorporates only those production expenses that vary—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of products.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding production costs but including items like rent, utilities, and payroll.