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Commerce · Q464

Costing

Graduate and Post Graduate · Commerce · question 464

Q464

Function which is used to measure decline in per unit cost of different business functions is classified as

A.
mixed curve
B.
experience curve
Answer
C.
discrete curve
D.
fixed curve

Answer: Option B

Solution

Answer: Option B
Solution:
Function which is used to measure decline in per unit cost of different business functions is classified as experience curve. Experience curve refers to a diagrammatic representation of the inverse relationship between the total value-added costs of a product and the company experience in manufacturing and marketing it.