This paper claims learning curves, as advocated today in the accounting literature, ignore the effect of time on costs and, hence, may be misued. It is suggested to add to the analysis a variable for intensity of production. Two cases are presented to illustrate the use and the effects of the suggested variable and the estimation of the relevant parameters.
Get full access to this article
View all access options for this article.
References
1.
AlchianArman, “Costs and Outputs,” in M. Abramovitz The Allocation of Economic Resources. (Stanford University Press, 1959).
2.
HirshleiferJack, “The Firm's Cost Function: A Successful Reconstruction?”Journal of Business, 35 (July 1962), pp. 235–55.
3.
HirshleiferJack, Price Theory and Application, third edition, Prentice-Hall, 1984.
4.
HorngrenCharlesFosterGeorge, Cost Accounting: A Managerial Emphasis. 6th ed. (Prentice Hall1987).
