The arrival of new manufacturing techniques such as automation,flexible manufacturing systems,and cluster or cell manufacturing has:
A)Emphasized the importance of direct labor variances.
B)Not had an effect on the importance of direct labor variances.
C)De-emphasized the importance of direct labor variances.
D)Made direct labor variances obsolete.
E)Eliminated the need to calculate and report direct materials variances.

Question

Quizplus · Accepted Answer

The introduction of new manufacturing techniques such as automation, flexible manufacturing systems, and cluster or cell manufacturing has reduced the importance of direct labor variances. With these new techniques, direct labor costs become a smaller portion of total manufacturing costs, making direct labor variances less significant.

The Arrival of New Manufacturing Techniques Such as Automation,flexible Manufacturing