ACCA PM · Chapter 11 · Question 4 of 10
In which of the following situations is a learning curve most likely to apply?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A labour-intensive assembly process for a new, complex product, with a stable workforce and continuous production
Explanation
Learning effects arise when a new task is repeated by people who retain what they have learned. They are strongest in labour-intensive, complex, early-stage production with continuity. Machine-paced work, mature products and frequent breaks or staff turnover limit or eliminate the learning effect.
More Quantitative analysis in budgeting MCQs
- Q6Total costs were $61,000 at 10,000 units and $93,000 at 18,000 units. Fixed costs increase by $8,000 when activity exceeds 15,000 units…
- Q7A company uses linear regression (y = a + bx) to estimate overhead costs (y, $000) from machine hours (x, 000 hours). From five…
- Q8The correlation coefficient between advertising spend and sales volume has been calculated as 0.9. What proportion of the variation in…
- Q9In the learning curve formula y = ax^b, b = log r / log 2. What is the value of b for a 90% learning curve (to three decimal places)?
- Q10Which of the following is a limitation of the high-low method of cost estimation?