Over recent decades, overhead costs have steadily increased while direct labor costs have decreased as a percentage of total manufacturing costs.

Question

Quizplus · Accepted Answer

This trend has been observed in many industries due to the increasing use of technology and automation in manufacturing processes. As a result, companies are spending more on overhead expenses such as facility maintenance, utilities, and administrative staff, while relying less on direct labor to produce goods.

Over Recent Decades, Overhead Costs Have Steadily Increased While Direct