Advances in computerized systems, technological innovation, global competition, and automation have changed the manufacturing environment drastically by
A) increasing direct labor costs and increasing overhead costs.
B) increasing direct labor costs and decreasing overhead costs.
C) decreasing direct labor costs and decreasing overhead costs.
D) decreasing direct labor costs and increasing overhead costs.

Question

Quizplus · Accepted Answer

Advances in computerized systems, technological innovation, and automation have resulted in decreased direct labor costs. However, the implementation and maintenance of these systems require significant upfront costs and ongoing expenses, thus increasing overhead costs. Additionally, the global competition has forced manufacturers to invest in these technologies for improved efficiency and competitiveness, further increasing overhead costs. Therefore, the overall trend is a decrease in direct labor costs and an increase in overhead costs.

Advances in Computerized Systems, Technological Innovation, Global Competition, and Automation