Which one of the following is not descriptive of the experience curve?
A) It is very useful because it is consistent for all organizations within a particular industry.
B) It is used to estimate the production cost of a product produced by newly introduced techniques or processes.
C) The experience curve varies by industry and is based on many variables.
D) The concept was first applied in the airframe industry.
E) It shows that production costs decline by some fixed percentage as production in units doubles.

Question

Quizplus · Accepted Answer

The statement "It is very useful because it is consistent for all organizations within a particular industry" is not descriptive of the experience curve. In fact, the experience curve varies by industry and is based on many variables. The other statements are all true about the experience curve.

Which One of the Following Is Not Descriptive of the Experience