[A] _____ establishes the rate of improvement because of learning as producers realize direct-labor cost improvements as production volumes increase.
A)leverage
B)learning curve
C)knowledge curve
D)product life cycle
E)short-term contract

Question

Quizplus · Accepted Answer

The learning curve is a concept that establishes the rate of improvement because of learning. As production volumes increase, producers realize direct-labor cost improvements due to increased experience and expertise, resulting in cost savings. Choice A (leverage) is a financial concept that refers to the use of borrowed funds to increase the potential return on an investment. Choices C, D, and E are not related to the concept of learning and direct-labor cost improvements.

[A] _____ Establishes the Rate of Improvement Because of Learning