Learning curve

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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February 15, 2023 at 7:51 am #678921
home001
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Hello sir,
I hope you are fine i had question about consequences of not taking into account the learning curve.. i searched alot about it but i could only find few points about it such as need to calculate planning and operational variances, high price if based on first few units.
Kindly can you explain me few other consequences … Thanks
February 15, 2023 at 9:26 am #678924
John Moffat
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Not taking the leaning rate into account will affect the budgeted/standard cost used. This will affect the operational variances and may also affect pricing decisions if the cost is used to determine the selling price.
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