Vidyalelo
Commerce · Q372

Costing

Graduate and Post Graduate · Commerce · question 372

Q372

Model which states decline in extra time needed to produce last unit, every time for cumulative quantity of doubled units produced is classified as

A.
incremental unit average model
B.
incremental cost learning model
C.
incremental unit time learning model
Answer
D.
incremental price learning model

Answer: Option C

Solution

Answer: Option C
Solution:
Model which states decline in extra time needed to produce last unit, every time for cumulative quantity of doubled units produced is classified as incremental unit time learning model. Incremental unit-time learning model can be defined as Learning curve model in which the incremental unit time (the time needed to produce the last unit) is reduced by a constant percentage each time the cumulative quantity of units produced is doubled.