Over the past century cost structures in the typical company have shifted significantly as a consequence of breakthroughs in technology, resulting in a major downward shift in direct labor as a percentage of total manufacturing costs.

Question

Quizplus · Accepted Answer

With the increase in automation resulting from new technologies, the percentage of manufacturing costs represented by direct labor has decreased, and the percentage represented by factory overhead has increased.

Over the Past Century Cost Structures in the Typical Company