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Learning rate.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Learning rate.

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • April 22, 2021 at 2:42 pm #618523
    rosin
    • Topics: 15
    • Replies: 13
    • ☆

    Hello sir,
    I just read one question it was asked that what will be the impact of overestimation of learning rate have on labour cost will it increase or will it decrease?

    So does it mean that we estimated for say, 95% and actually the learning rate was 90% ?(i.e we overestimated by 5%)

    Or does it mean that we overstated i.e there will be 70% L.r but only 80% happen..(i.e we overstated by 10%)

    Sir how to interpret it?

    April 22, 2021 at 3:48 pm #618529
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49598
    • ☆☆☆☆☆

    In terms of the pure English it could actually mean either. I can’t believe this would be asked in the real exam unless there was more clarification.

    Where did you find the question, and what does the answer say?

    April 23, 2021 at 4:38 am #618560
    rosin
    • Topics: 15
    • Replies: 13
    • ☆

    https://photos.app.goo.gl/cKyn8kn8Rk75TQSSA

    Ans)
    Labour adverse planning efficiency.

    This question was featured in revision kit of first institution uk

    April 23, 2021 at 8:03 am #618578
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49598
    • ☆☆☆☆☆

    Because the question states that the learning effect has been entered into a spreadsheet, it must mean that the learning rate has been overestimated – that they have entered too high a learning rate in the spreadsheet.

    Given the actual learning rate is lower, the actual time taken (and therefore the labour cost) will be lower than what was budgeted.

    (I am surprised that First Intuition’s answer does not make this clear.)

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