An 80% Learning Curve Means That with Each Unit Increase

question 32

True/False

An 80% learning curve means that with each unit increase in production, labor requirements fall by 20%.

---

Definitions:

Machine-Hours

An evaluation of manufacturing productivity or action determined by how long equipment is running.

Total Job Cost

The total expense attributed to producing a specific job, including materials, labor, and overhead costs.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to individual units of production based on a chosen activity base.

Machine-Hours

A measure of production volume or activity based on the number of hours machines are operated in the manufacturing process.