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Current Trends in Manufacturing Include Less Direct Labour and More

question 46

True/False

Current trends in manufacturing include less direct labour and more overhead.


Definitions:

Sunk Cost

Refers to money that has already been spent and cannot be recovered, which should not influence future business decisions.

Standard Cost Formula

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under normal conditions, used for budgeting and cost control.

Total Cost

The aggregate amount of all costs involved in producing a product or delivering a service, including direct materials, labor, and overhead expenses.

Indirect Manufacturing Cost

Costs in manufacturing that are not directly traceable to individual products, such as maintenance, utilities, and factory supervision.

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