As companies experience a shift from labor-intensive operations to automated operations, which of the following costs becomes more difficult to trace to products?
A) Administrative costs
B) Direct labor costs
C) Direct material costs
D) Overhead costs

Question

Quizplus · Accepted Answer

As companies automate, overhead costs, which include expenses like machinery maintenance and utilities, become more complex and harder to allocate directly to specific products compared to direct labor and materials.

As Companies Experience a Shift from Labor-Intensive Operations to Automated