A.Data relating to the production of the first twelve units of a new product are as follows.
Time taken to produce the first unit 15 hours
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
Cumulative time taken to produce first 12 units 81 hours
The percentage learning effect is closest to
B. ‘The learning curve is a simple mathematical model but its application to management
accounting problems requires careful thought.’
Having regard to the above statement:
(a) explain the ‘cumulative average-time’ model commonly used to represent learning curve effects.
(b) sketch two diagrams to illustrate, in regard to a new product, the relative impacts of 70,
80 and 90 per cent learning curves on:
● cumulative average hours per unit,
● cumulative hours taken.
(c) explain the use of learning curve theory in budgeting and budgetary control; explain the
difficulties that the management accountant may encounter in such use.
(d) compare and contrast the learning curve with the experience curve; explain the circumstances
when each may be most relevant.
The post Explain the use of learning curve theory in budgeting and budgetary control appeared first on Best Custom Essay Writing Services | EssayBureau.com.