Understanding Learning Curves Will Enable Procurement Specialists to Determine the Number

question 74

Multiple Choice

Understanding learning curves will enable procurement specialists to determine the number of units of the specialized item that they plan to order and then negotiate with the supplier based on the order size.This statement is an application of learning curves in which of the following functions?

• A)workforce planning and scheduling
• B)cost estimation and budgeting
• C)new product pricing
• D)procurement negotiations in supply chains

---

Definitions:

Total Variable Cost

The entirety of costs that vary directly with the level of production or service delivery, such as materials and labor, contrasted with fixed costs which remain constant regardless of production levels.

Total Cost

Total cost encompasses the entire expense incurred for producing a specific quantity of goods or services, including both fixed and variable costs.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Average Total Cost

The total cost of production divided by the number of units produced, which includes both fixed and variable costs.