After the change,direct labor costs as a percentage of sales are projected to decrease because:
A)less work-in-process inventory needs to be moved from location to location.
B)fewer employees are needed to produce a product due to the new work design.
C)less supervisors are needed to oversee operations.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The new work design is anticipated to require fewer employees, which should result in lower direct labor costs as a percentage of sales. The other options may have effects on cost but are not directly related to direct labor costs as a percentage of sales.

After the Change,direct Labor Costs as a Percentage of Sales