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Explain How Changes in Technology Affect and Change the Demand

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Explain how changes in technology affect and change the demand for labor.Distinguish between situations in which a particular type of technological change increases the demand for a particular type of labor and those in which it decreases the demand for a particular type of labor.


Definitions:

Batch Setup

The process of preparing equipment and machinery for a specific batch of production, including configuration and adjustments.

Activity Cost Pools

A method in cost accounting where costs are accumulated according to activities performed, facilitating more accurate product or service costing.

Activity-based Costing System

A method of allocating costs to products or services based on the activities that go into producing them.

Traditional Cost System

A cost accounting system that allocates overhead costs to products based on a predetermined rate, often using direct labor hours or machine hours as the allocation base.

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