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Increase in learning curve and cost gap

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Increase in learning curve and cost gap

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • May 1, 2019 at 12:52 pm #514705
    kingkongsajang
    Member
    • Topics: 95
    • Replies: 75
    • ☆☆

    If the learning curve (%) has increased from 90% to 95% why does the cost gap increase?

    Surely and increase in learning curve means greater efficiency so reduced the surplus cost gap and therefore cost gap falls??

    May 1, 2019 at 3:40 pm #514717
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    If you watch my free lectures, you will appreciate that a higher learning rate means that there is less learning. (If the learning rate was 100% then there would be no learning at all and the time would not reduce at all)

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