Explain the learning curve of an employee must be taken into account in any unit cost...
Explain the learning curve of an employee must be taken into account in any unit cost estimation process.
Homework Answers
Learning curve also known showsas experience or cost curve that if a task is performed over and over by the same employee, less time will be required for each iteration.
It demonstrates that over the period of time there is an increase in productivity but with the diminishing rate as production increases.
Due to learning curve, there is increase in productivity which leads to reducing the cost of production.
The concept of learning curves is that cost per unit decreases with experience as skills and processes improves over the period of time.
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Explain the learning curve of an employee must be
taken into account in any unit cost...
Learning Curve percentage 0.80 Exponent for an 80% learning curve -0.321900 Direct Material Cost, per unit...
Learning Curve percentage 0.80 Exponent for an 80% learning curve -0.321900 Direct Material Cost, per unit $74,400.00 DMLH, for first unit 2,790.00 DML$, per hour $23.25 VMOH, per DMLH $13.95 (6) Calculate the total variable cost of producing 2, 4, 8, and 16 units, using the Cumulative average-time model. (7) Calculate the total variable cost of producing 2, 3, 4, and 5 units, using the Incremental unit-time model.
Consider a process with a unit cost of $50 for the first unit and a learning...
Consider a process with a unit cost of $50 for the first unit and a learning rate of 0.9. What will be the unit cost for the 64th unit?
UNIT CODE: BAF2202 UNIT TITLE: MANAGEMENT ACCOUNTING I &nb
UNIT CODE: BAF2202 UNIT TITLE: MANAGEMENT ACCOUNTING I Assume that a certain process has an 95% learning curve effect and the first unit took 4000hrs to produce. Required: Compute the number of hours required to produce the first 34 units Compute the number of hours required to produce 34th unit. iii) Assume that the wage rate is Kshs.100 per hour, compute the Labor cost of producing the last 16 units Differentiate between management accounting and financial accounting Highlight the...
CHAPTER 6: LEARNING CURVE (MONDAY) 1. The unit improvement factor for a 60 percent learning curve at 25 units...
CHAPTER 6: LEARNING CURVE (MONDAY) 1. The unit improvement factor for a 60 percent learning curve at 25 units is 0.0933. The first and second timings of a person doing a job are 5 minutes and 3 minutes respectively. What is the learning-adjusted time estimate for unit number 25? 2. You have just timed a person doing a job a few times. The first time it took the person 25 minutes, the second time it took 20 minutes, and the...
Assume that a certain process has an 95% learning curve effect and the first unit took...
Assume that a certain process has an 95% learning curve effect and the first unit took 4000hrs to produce. Required: Compute the number of hours required to produce the first 34 units (3 Marks) Compute the number of hours required to produce 34th unit. (2 Marks) iii) Assume that the wage rate is Kshs.100 per hour, compute the Labor cost of producing the last 16 units
UNIT CODE: BAF2202 UNIT TITLE: MANAGEMENT ACCOUNTING I Assume that a certain process has an
UNIT CODE: BAF2202 UNIT TITLE: MANAGEMENT ACCOUNTING I Assume that a certain process has an 95% learning curve effect and the first unit took 4000hrs to produce. Required: Compute the number of hours required to produce the first 34 units Compute the number of hours required to produce 34th unit. iii) Assume that the wage rate is Kshs.100 per hour, compute the Labor cost of producing the last 16 units Differentiate between management accounting and financial accounting Highlight the assumptions...
b) Assume that a certain process has an 95% learning curve effect and the first unit...
b) Assume that a certain process has an 95% learning curve effect and the first unit took 4000hrs to produce. Required: i) Compute the number of hours required to produce the first 34 units (3 Marks) ii) Compute the number of hours required to produce 34th unit. (2 Marks) iii) Assume that the wage rate is Kshs.100 per hour, compute the Labor cost of producing the last 16 units
40. The labour cost to construct the first unit of a special piece of equipment was...
40. The labour cost to construct the first unit of a special piece of equipment was $126,000. If labour costs are subject to a 90% learning curve, what will be the cost to build the second unit? Use the following values as needed to respond In(95%) / ln(2)s-0074 In(90%) /ln(2) =-0.152 In(8596) / ln(2) =-0.234 In(80%) / In(2) =-0.322 n(75%)/In(2) =-0.415 In(70%)/In(2) -0.515 a) $126,000 b) $113,000 c) $100,800 d) $113,400 Answer: d 41 A firm will build 8 units...
A firm's learning curve, which shows the relationship between average cost and cumulative output (the sum...
A firm's learning curve, which shows the relationship between average cost and cumulative output (the sum of its output since the firm started producing), is AC = a + bn", where AC is its average cost; N is its cumulative output; and a, b, and r are constants. What is the firm's AC if r=0? If r= 0, then AC = a + b. (enter formula) If r= 0, what can you say about the firm's ability to learn by...
Explain why incarceration rates must be taken into account in order to understand labor market inequality....
Explain why incarceration rates must be taken into account in order to understand labor market inequality. Support your answer by identifying and describing two specific ways in which incarceration impacts the wage gap between black and white men?
40. The labour cost to construct the first unit of a special piece of equipment was $126,000. If labour costs are subject to a 90% learning curve, what will be the cost to build the second unit? Use the following values as needed to respond In(95%) / ln(2)s-0074 In(90%) /ln(2) =-0.152 In(8596) / ln(2) =-0.234 In(80%) / In(2) =-0.322 n(75%)/In(2) =-0.415 In(70%)/In(2) -0.515 a) $126,000 b) $113,000 c) $100,800 d) $113,400 Answer: d 41 A firm will build 8 units...
A firm's learning curve, which shows the relationship between average cost and cumulative output (the sum of its output since the firm started producing), is AC = a + bn", where AC is its average cost; N is its cumulative output; and a, b, and r are constants. What is the firm's AC if r=0? If r= 0, then AC = a + b. (enter formula) If r= 0, what can you say about the firm's ability to learn by...
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