Because of Automation Which Component of Product Cost Is Declining

question 25

Multiple Choice

Because of automation which component of product cost is declining?

• A) Direct labor
• B) Direct materials
• C) Manufacturing overhead
• D) Advertising

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Definitions:

Sunglasses

Eyewear designed to protect the eyes from the sun's harmful rays and reduce glare.

Excess Demand

An instance where the market's need for a service or product surpasses the available supply.

Equilibrium Price

The price in the market where the amount of products provided matches the amount of products wanted.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.