Managing and sustaining product diversity requires many more overhead resources such as production schedulers and product design engineers than managing and sustaining a single product.The costs of these resources can be accurately allocated to products on the basis of direct labor-hours.

Question

Quizplus · Accepted Answer

The costs of overhead resources like production schedulers and product design engineers are not accurately allocated based solely on direct labor-hours, as these resources are not directly tied to labor time and may be better allocated using activity-based costing methods.

Managing and Sustaining Product Diversity Requires Many More Overhead Resources