Increasing automation in a manufacturing facility will likely:
A) increase the number of direct labor hours and decrease overhead costs.
B) decrease the number of direct labor hours and increase overhead costs.
C) decrease the number of direct labor hours and decrease overhead costs.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

Increasing automation typically reduces the need for direct labor, thus decreasing direct labor hours, while increasing overhead costs due to the expenses associated with maintaining and operating automated machinery.

Increasing Automation in a Manufacturing Facility Will Likely