BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The decline in the average cost with accumulated production experience is called theexperiencecurveorlearning curve.

Detailed explanation-2: -Accumulated production expenditures include the adjusted bases (or portion thereof) of any equipment, facilities, or other similar assets, used in a reasonably proximate manner for the production of a unit of designated property during any measurement period in which the asset is so used.

Detailed explanation-3: -The average cost of production is defined as the total cost of production per unit produced. In simple words, average cost comes when the total cost of production is divided by the number of product units produced.

Detailed explanation-4: -The average cost refers to the total cost of production divided by the number of units produced. It can also be obtained by summing the average variable costs and the average fixed costs. Management uses average costs to make decisions about pricing its products for maximum revenue or profit.

Detailed explanation-5: -There are a number of different types of costs of production that you should be aware of: fixed costs, variable costs, total cost, average cost, and marginal cost.