Unformatted text preview: TRUE Diff: 1 Terms: cost function Objective: 5 AACSB: Reflective thinking 43) An "economy of scale" function is an example of a linear cost function. Answer: FALSE Explanation: A nonlinear cost function is a cost function for which the graph of total costs is not a strait line within the relevant range. In an economy of scale situation, where there is a possibility of producting double the product for less than double the cost; the function would be nonlinear. Diff: 1 Terms: nonlinear cost function Objective: 6 AACSB: Reflective thinking 44) A step costfunction is an example of a nonlinear cost function. Answer: TRUE Diff: 1 Terms: nonlinear cost function Objective: 6 AACSB: Reflective thinking 45) Step fixedcost functions are variable over the long run. Answer: TRUE Diff: 2 Terms: nonlinear cost function, step cost function Objective: 6 AACSB: Reflective thinking 46) An of a step variablecost function is the cost of materialhandling labor when inputs are acquired in discrete quantities. example Answer: TRUE Diff: 2 Terms: nonlinear cost function, step cost function Objective: 6 AACSB: Reflective thinking 47) A learning curve measures the effect of learning on efficiency. Answer: TRUE Diff: 1 Terms: learning curve Objective: 6 AACSB: Reflective thinking 48) Plotting learning curve observations is helpful in selecting the appropriate learning curve model. Answer: TRUE Diff: 1 Terms: learning curve Objective: 7 AACSB: Reflective thinking 49) When new products are introduced, learningcurve effects can have a major influence on production scheduling. Answer: TRUE Diff: 2 Terms: learning curve Objective: 7 AACSB: Reflective thinking 50) It is appropriate to incorporate expected learningcurve efficiencies when evaluating performance. Answer: TRUE Diff: 1 Terms: learning curve Objective: 7 AACSB: Ethical reasoning 51) The e averagetime learning model with a 90% learning curve indicates that if it takes 100 minutes to manufacture the first unit cumulativ of a new m...
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 Spring '08
 BROWN
 AACSB, Reflective thinking

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