Question

As compared to cumulative average-time learning model, learning model which predicts more cumulative total time to produce more units is known as_________
A. Incremental unit time learning model
B. Incremental price learning model
C. Incremental unit average model
D. Incremental cost learning model

Answer 1

Hint:- With the cumulative number of units produced, the cumulative average time (or cost) per unit declines. The average time learning curve represents the fact that the time spent per unit declines by a constant percentage as the number of units produced doubles. The same function happens in the unit time learning model.

Complete step-by-step solution:Step 1:
Let us first see the theory of the learning curve.
The theory of the learning curve or experience curve is based on the simple idea that the time required to perform a task decreases as a worker gains experience. The basic concept is that the time, or cost, of performing a task (like producing a unit of output) decreases at a constant rate as cumulative output doubles. Learning curves are useful for preparing cost estimates, bidding on special orders, setting labor standards, scheduling labor requirements, evaluating labor performance, and setting incentive wage rates.
Cumulative Average Model: the learning curve function is defined as follows:
Y = $_a{X^b}$
Y = the cumulative average time (or cost) per unit.
X = the cumulative number of units produced.
a = time (or cost) required to produce the first unit.
b = slope of the function when plotted on log paper.

Cumulative Average Time Learning Curve: The cumulative average time learning curve represents the fact that the time spent per unit declines by a constant percentage as the number of units produced doubles. This phenomenon has been observed when new long-term production activities are undertaken or when a long production cycle is conducted, such as building construction projects, automotive manufacturing, and shipbuilding.
Incremental unit-time learning model can be defined as learning curve model in which the incremental unit time (the time needed to produce the last unit) is reduced by a constant percentage each time the cumulative quantity of units produced is doubled
Hence we have seen that the option A has truly followed what cumulative average-time learning curve
So option A is the correct answer.

Note:-
Limitations: Because learning curves differ from company to company, as well as industry to industry, estimates for each organization should be developed rather than applying someone else’s. Learning curves are often based on the time necessary to complete the early units; therefore, those times must be accurate. As current information becomes available, reevaluation is appropriate