Which of the following statements is not true regarding current manufacturing companies?
A) Materials and wages constitute the largest portions of the per-unit costs.
B) Most production labor time is spent running production equipment rather than actually physically working on a product.
C) Production processes are highly automated.
D) Production processes are more complex.

Question

Quizplus · Accepted Answer

Materials and wages often constitute significant portions of costs, but with advancements in automation and technology, the statement that they are the largest portions of the per-unit costs may not always be true. Automation has reduced the relative cost of labor, and in some industries, other costs such as research and development or marketing may constitute a larger portion of per-unit costs.

Which of the Following Statements Is Not True Regarding Current