Chong Corporation has a highly automated production facility. Which of the following correctly shows the two factors that would likely have the most direct influence on the company's manufacturing overhead budget?

Question

Quizplus · Accepted Answer

For a highly automated production facility, the manufacturing overhead budget is most directly influenced by production volume, as automation costs are closely tied to the level of production activity. Management judgment plays a crucial role in estimating these costs and making decisions about production levels, automation, and other overhead factors.

Chong Corporation Has a Highly Automated Production Facility