The function which is used to measure the decline in per unit cost of different business functions is classified as _____________?
Correct answer: B. experience curve
- A. mixed curve
- B. experience curve
- C. discrete curve
- D. fixed curve
Explanation
The experience curve shows how average or per-unit cost declines as cumulative production experience increases. It reflects learning and efficiency gains, unlike a fixed or discrete curve.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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