A 90% Learning Curve Indicates

question 41

Multiple Choice

A 90% learning curve indicates

• A) a 90% increase in processing time per unit as output doubles.
• B) a 90% decrease in processing time per unit as output doubles.
• C) a 10% increase in processing time per unit as output doubles.
• D) a 10% decrease in processing time per unit as output doubles.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made at specific periods, such as monthly or annually, rather than continuously.