The First Product Took 10 Hours to Build and the Learning

question 49

Multiple Choice

The first product took 10 hours to build and the learning curve is estimated to be 90%.How long will it take to make the fourth unit?

• A)10 hours
• B)9 hours
• C)8.1 hours
• D)7.5 hours
• E)none of the above

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Definitions:

Retained Earnings

The portion of a company's profits kept in the business after dividends are paid to shareholders, used for reinvestment or to pay off debt.

Non-controlling Interest

An ownership interest in a corporation where the percentage of shares owned does not give the shareholder the control of the company.

Debit Entry

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Full Goodwill Method

An accounting approach where goodwill is calculated as the difference between the purchase price of a subsidiary and the fair value of its identifiable net assets, including both the minority and majority interest.