The number of units will increase to accommodate increased production, but the number of components per unit of output will not decrease since we assume that there is not spoilage or waste. Yield per direct material is unchanged, yield per hour of work and, by extension, demand for components (direct material), will increase. The number of components per unit of output will not decrease since we assume that there is not spoilage or waste.

Only the number of units will increase to accommodate increased production. This in turn will cause the number of components needed for assembly to increase for successive periods, to accommodate increased production. Assuming constant hours and no spoilage, the number of components per unit of output will remain unchanged, but productivity will increase.

The learning curve relates to the efficiency with which productive resources, typically labor, are employed. Therefore, the number of components needed for an assembly operation with an 80 percent learning curve will increase for successive periods to accommodate increased production, assuming demand exceeds capacity, there is no spoilage and that there is full utilization of a constant number of assembly hours. The learning curve relates to the efficiency with which productive resources, typically labor, are employed, and it suggests that productivity will increase over time. Neither I nor II.Įxplanation Choice 'a' is correct. Question CPA-03785 Given that demand exceeds capacity, that there is no spoilage or waste, and that there is full utilization of a constant number of assembly hours, the number of components needed for an assembly operation with an 80 percent learning curve should I.

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