The First Unit of a Product Took 50 Hours to Build,and

question 29

Multiple Choice

The first unit of a product took 50 hours to build,and the learning curve is 85%.How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the formula approach. )

• A)less than 24 hours
• B)from 25 to 30 hours
• C)from 30 to 35 hours
• D)from 35 to 40 hours
• E)more than 40 hours

---

Definitions:

Write Off

The act of removing an asset from the financial statements due to its impairment or irrelevance, recognizing it as a loss.

Estimated Bad Debts

An account on the financial statements estimating the amount of receivables that a company does not expect to collect.

Percentage of Sales Method

An accounting technique used to estimate bad debts or the allowance for doubtful accounts based on a predetermined percentage of sales.

Current Revenues

Income generated from the normal business operations within the current accounting period.