A Ninety Percent Learning Curve Is Steeper Than an Eighty

question 57

True/False

A ninety percent learning curve is steeper than an eighty percent learning curve.

---

Definitions:

Overhead Cost

Expenses related to the operation of a business that cannot be directly tied to a specific product or service, such as rent and utilities.

Setups

The process or cost of configuring machinery or equipment to change from producing one product to another.

Fixed Overhead Costs

Expenses that remain constant for a period of time irrespective of the level of outputs, like factory rent or salary of permanent employees.

High-low Method

A technique used in accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.