Although direct labour may not be an appropriate allocation base in some industries,in others it continues to be a significant driver of manufacturing overhead.

Question

Quizplus · Accepted Answer

Direct labour can be a significant driver of manufacturing overhead in some industries where manual labour plays a major role in the production process. However, in industries where automation and machinery are major components of the production process, direct labour may not be an appropriate allocation base.

Although Direct Labour May Not Be an Appropriate Allocation Base