Learning curves have been used extensively in industries such as aircraft, shipbuilding, and home appliances. The learning curve concept is especially applicable in industries when labor cost is a large component of total production costs and the production operation is complex. In such production operations, the learning curve should be considered when planning labor costs across several years, as in the strategic, long-range budget. Also, each period’s tactical, short-term budget will reflect labor costs that are consistent with the position on the learning curve for the particular time period.