As a consequence of automation and product diversity, in cost estimation:
A) A facility level approach to estimating costs is increasingly important
B) Companies no longer need to pay attention to estimating overhead
C) Cost estimation is improved with the inclusion of non-unit cost drivers
D) Direct labor is playing an increasingly important role in cost determination

Question

Quizplus · Accepted Answer

With modern production methods, many variable costs may be driven by activities not related to units of production, but rather to non-unit activities such as the number of batches produced, or the number of different products supported by the production facility.

As a Consequence of Automation and Product Diversity, in Cost