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Recent developments in manufacturing and marketing have resulted in significant changes to cost manufacturing structures. Which of the following statements is/are false?
i. The proportion of direct labour increases.
ii. The proportion of manufacturing overhead increases.
iii. Product diversity decreases.
iv. The proportion of non-volume-related manufacturing overheads increases.
A) i and ii
B) i and iii
C) ii and iii
D) iii and iv
Manufacturing Structures
The organization and setup of production facilities, including the arrangement of machinery, equipment, and workflow, to efficiently produce goods.
Direct Labour
The labor costs for employees who are directly involved in the production of goods or services.
Product Diversity
The variety of different products that a company produces or sells, reflecting its range of offerings in the market.
- Assess the repercussions of overhead charges on the costing of goods and how Activity-Based Costing (ABC) mitigates this issue.
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Learning Objectives
- Assess the repercussions of overhead charges on the costing of goods and how Activity-Based Costing (ABC) mitigates this issue.
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