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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Life cycle costing
hi,
using the learning curve formula we first take out 100th unit value and then for 99th and then subtract the 100th value from 99 to get the value for one unit. In question no 4 Dec’2011 part b why the examiner has taken 99,900 units for calculating the revised life cycle cost?
Good day!
The question says that the learning effect occurs until the 100th unit has been made.
So for the first 100 units there is learning, but the remaining 99,900 units (so as to get a total of 100,000 units) each take the same time as the 100th units – there is no more learning involved.
Oh I got it, I missed a bit of the data.
Thank you 🙂
You are welcome 🙂