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ACCA Applied Knowledge · Management Accounting · Analytical techniques in budgeting and forecasting

In which situation is learning curve theory MOST likely to be applicable?

Learning curve theory best applies to the production of a new, complex, labour-intensive product. Workers improve with repetition of unfamiliar tasks, so time per unit falls. Automated, machine-paced or long-established processes leave little room for further learning, so the theory is less relevant there.

  1. AHighly automated, machine-paced production of a standard item
  2. BManufacture of a long-established product by an experienced workforce
  3. CProduction of a new, complex product that is largely labour-intensiveCorrect
  4. DA process where output is limited by machine capacity rather than people

Explanation

Learning curve theory assumes that labour efficiency improves with repetition as workers become familiar with a task. This effect is greatest with new, complex, labour-intensive work. In automated or long-established processes, there is little or no learning left to occur.

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