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CAF-5 · Chapter 4 · Question 7 of 10

According to the Learning Curve theory, what happens when the cumulative output or production doubles?

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Reveal answer & explanation

Correct answer: B) The cumulative average time per unit is reduced by a constant percentage.

Explanation

The core assumption of the learning curve theory is that every time cumulative output doubles, the cumulative average time per unit falls to a constant percentage of the previous cumulative average time.

All 10 questions in Chapter 4Labour Costing MCQs with answers

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