Question 1

**Section A**

AeroParts Manufacturing is producing a complex new turbine component. The first unit took exactly 200 labor hours to produce. The production manager expects a 90% learning curve to apply to this process.

Calculate the expected *average* time per unit for the first 4 units produced. (Enter the numerical value only)

Accepted Answer

Use the tabular method for doubling output: 
1 unit = 200 hours average. 
2 units = 200 * 0.90 = 180 hours average. 
4 units = 180 * 0.90 = 162 hours average.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Calculating the total time for 4 units (648 hours) instead of the average time, or applying the 90% only once.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA PM — Performance Management Practice Exam 4

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