Over the past decade, the composition of total manufacturing costs has resulted in which of the following?
A) Manufacturing overhead decreasing as a percent of total manufacturing costs.
B) Direct labor decreasing as a percent of total manufacturing costs.
C) Direct materials decreasing as a percent of total manufacturing costs.
D) Direct labor increasing as a percent of total manufacturing costs.

Question

Quizplus · Accepted Answer

Over the past decade, the trend in manufacturing has been towards automation and the use of technology, which has reduced the reliance on direct labor, thus decreasing its percentage of total manufacturing costs. This shift has been driven by efforts to increase efficiency and reduce costs.

Over the Past Decade, the Composition of Total Manufacturing Costs