Saturday, July 30, 2011

Learning curve effects can be incorporated

ACCOUNTING

Multiple Choice

Learning curve effects can be incorporated

a. into performance evaluations.

b. into production schedules.

c. when using costs to price products.

d. into all of the above.

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1. To complete the first setup on a new machine took an employee 200 minutes

ACCOUNTING

Multiple Choice

To complete the first setup on a new machine took an employee 200 minutes. Using an 80% incremental unit-time learning model indicates that the second setup on the new machine is expected to take

a. 160 minutes.

b. 120 minutes.

c. 80 minutes.

d. 60 minutes.

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To complete the first setup on a new machine took an employee 200 minutes

ACCOUNTING

Multiple Choice

To complete the first setup on a new machine took an employee 200 minutes. Using an 80% cumulative average-time learning curve indicates that the second setup on the new machine is expected to take

a. 160 minutes.

b. 120 minutes.

c. 80 minutes.

d. 60 minutes.

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An experience curve

ACCOUNTING

Multiple Choice

An experience curve

a. is a narrower application of the learning curve.

b. measures the decline in cost per unit as production decreases for various value-chain functions such as marketing as production increases.

c. only measures the decline in labor-hours per unit as units produced increases.

d. measures the increase in cost per unit as productivity increases.

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A learning curve is a function

ACCOUNTING

Multiple Choice

A learning curve is a function

a. that measures the decline in labor-hours per unit due to workers becoming better at a job.

b. that increases at a greater rate as workers become more familiar with their tasks.

c. where unit costs increase as productivity increases.

d. that is linear.

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A step variable-cost function

ACCOUNTING

Multiple Choice

A step variable-cost function

a. is fixed over the long run, but not over the short run.

b. is often approximated with a continuous variable-cost function.

c. remains the same over a wide range of activity.

d. example includes adding additional warehouse space.

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A step fixed-cost function

ACCOUNTING

Multiple Choice

A step fixed-cost function

a. is fixed over the short run, but not over the long run.

b. is often approximated with a continuous variable-cost function.

c. remains the same over a narrow range of activity.

d. example includes setup costs.

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