A Manager Is Trying to Estimate the Appropriate Learning Curve

question 3

Multiple Choice

A manager is trying to estimate the appropriate learning curve for a certain job.The manager notes that the first four units had a total time of 30 minutes.Which learning curve would yield approximately this result if the first unit took 9 minutes? (Use Table E.3. )

• A)0.70
• B)0.75
• C)0.80
• D)0.85
• E)0.90

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Definitions:

Useful Life

The estimated period over which a fixed asset is expected to be usable for the purpose it was acquired.

Economic Value

Economic value refers to the worth of a good or service determined by its utility and ability to meet the demand of those willing to pay for it.

Operating Cost

The expenses associated with the day-to-day operations of a business, including costs for materials, labor, and overhead.

Useful Life

Useful life is the estimated duration a fixed asset is expected to be economically usable, affecting its depreciation calculation and financial planning.