Vidyalelo
Commerce · Q409

Costing

Graduate and Post Graduate · Commerce · question 409

Q409

Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as

A.
cumulative average time learning model
Answer
B.
cumulative mean learning model
C.
cumulative weighted learning model
D.
cumulative average pricing model

Answer: Option A

Solution

Answer: Option A
Solution:
Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as cumulative average time learning model. The cumulative average time learning curve represents the fact that the time spent per unit declines by a constant percentage as the number of units produced.