All Except One of the Following Is Listed as a Managerial

question 31

Multiple Choice

All except one of the following is listed as a managerial consideration or appropriate explanation in using learning curves.Which one is that?

• A)Improvement comes from working smarter, not harder.
• B)Individual learning and incentives are positively related.
• C)Newer the job, greater will be the learning.
• D)Learning curves is not impacted by the number of indirect labor (such as repair person and supervisor).
• E)Learning curve represent direct labor output.

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Definitions:

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales activity, such as rent, salaries, and insurance.

Marginal Costs

The additional cost incurred by producing one extra unit of a product or service.

Economic Profits

Profits exceeding the opportunity costs of a next best alternative, measuring the extent to which a firm has generated excess returns over its costs, including the cost of capital.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.