Which One of the Following Statements About Learning Curves Is

question 81

Multiple Choice

Which one of the following statements about learning curves is TRUE?

• A) A learning curve assumes that the direct labor requirements per unit will DECREASE at an INCREASING rate as cumulative production increases.
• B) A larger learning curve rate implies faster (greater) learning.
• C) A learning curve graph usually follows a negative exponential curve.
• D) Learning curves can be used only for individuals, not for the whole organization.
• E) The formula describing the learning curve principle of doubling is computed differently when computing unit cost as opposed to unit time.

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Definitions:

D1

Often used in dividend discount models, it represents the expected dividend per share for the next year.

Dividend Per Share

The amount of dividend that a company pays out to its shareholders for each share they own.

Return on Equity

An indicator of a company's financial performance, showing the amount of profit generated per dollar of shareholders' investment.

Required Return

The minimum expected return an investor demands for investment in a specific asset, considering its risk profile.