Why Is It Necessary to Consider the Learning Curve of Resources

question 34

Multiple Choice

Why is it necessary to consider the learning curve of resources on a project?

• A) to estimate labor costs properly
• B) to improve project team morale
• C) because it always takes less time to do a task after someone has done it a few times
• D) collective bargaining contracts require it
• E) All of the above

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities required to produce them, aiming to provide more accurate product costing.

Relevant Cost Decision Model

A decision-making tool that focuses on the costs directly related to a specific business decision, ignoring sunk costs and irrelevant expenses.

Recognises Revenues

The process of recording income in the financial statements when it is earned, according to the criteria set out in accounting standards.

Joint Cost Allocation

The process of distributing the costs of production that are incurred in producing multiple products at the same point of the process across those products.