As manufacturing moves toward automation, direct labor A. continues to be a major factor in the cost of products since automation is not capable of totally supplanting production workers. B. continues to be an appropriate base for computing overhead rates in all situations. C. is becoming less of a factor in the cost of products since machines now perform various functions that once were performed by direct labor workers. D. continues to be a major factor in the cost of products since supervisory salaries are increasing.
As manufacturing moves toward automation, direct labor A. continues to be a major factor in the cost of products since automation is not capable of totally supplanting production workers. B. continues to be an appropriate base for computing overhead rates in all situations. C. is becoming less of a factor in the cost of products since machines now perform various functions that once were performed by direct labor workers. D. continues to be a major factor in the cost of products since supervisory salaries are increasing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As manufacturing moves toward automation, direct labor
A. continues to be a major factor in the cost of products since automation is not capable of totally supplanting production workers.
B. continues to be an appropriate base for computing
C. is becoming less of a factor in the cost of products since machines now perform various functions that once were performed by direct labor workers.
D. continues to be a major factor in the cost of products since supervisory salaries are increasing.
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