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Refer to the scenario below to answer the following questions.
New Ideas Inc. (Scenario)
Though New Ideas Inc. has been in business for 30 years, the company and its employees have seemingly been in a constant state of change. Paul Gill has been president of New Ideas for the last 15 years. During this time, he has had to change the strategic focus of the company three times. The employees have become vocal recently about the decrease in their bonus cheques and are wanting to increased profits. It seems as though his competition is always introducing new products into the market, and the niches Gill thought New Ideas held leadership in are always changing. Recently the government has been active in passing new legislation to increase the control of the product packaging and product contents. The technology used to manufacture the products is constantly improving with the use of robotics to make the process more efficient.
-The robotics change in the manufacturing process to make it more efficient is the result a competitor lowering their price. Therefore it is a(n) __________ force for change.
Cost of Goods Manufactured
The total cost of materials, labor, and overhead incurred for products completed during a specific time period.
Factory Overhead
The total of all indirect costs associated with manufacturing, such as indirect labor, maintenance, and utilities that cannot be directly traced to a specific product.
Indirect Labor
Labor costs for employees who assist in the production process but are not directly involved in the creation of the final product, such as supervisors and maintenance workers.
Indirect Materials
Supplies used in the production process that cannot be directly traced to specific products, such as lubricants for machinery.
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