Which of the following statements is TRUE about the learning curve?
A)The curve decreases at an increasing rate.
B)The learning effect will eventually disappear as the number of units produced increases.
C)Failure to recognize learning curve effects will cause units produced later in a new production process to receive less cost than they should.
D)All of the above are true.

Question

Quizplus · Accepted Answer

All the statements provided are true about the learning curve. The learning curve illustrates that as the number of units produced increases, the time (and often cost) per unit decreases, typically at a decreasing rate. This effect, however, tends to plateau or disappear after a certain point when maximum efficiency is reached. Not accounting for the learning curve in cost calculations can indeed result in misallocated costs over time, with later units being undercosted as the learning effects are not properly anticipated or adjusted for.

Which of the Following Statements Is TRUE About the Learning