Based on this analysis, a large portion of product cost relates to direct material. Managers should determine whether the direct labor can be automated with machines. A few other ways management can reduce costs is to reduce the number of setups and the cost per setup because producing in small lots increase the setup and shipping costs. True or false?

Question

Trevor Rios

Business

1 September, 14:56

Based on this analysis, a large portion of product cost relates to direct material. Managers should determine whether the direct labor can be automated with machines. A few other ways management can reduce costs is to reduce the number of setups and the cost per setup because producing in small lots increase the setup and shipping costs. True or false?

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Answers (1)

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Amani Kelly · Answer 1

Answer:True

Explanation:

A large portion of product cost relates to direct materials and the number if setups is directly proportional to the length if time require to carry out production. When producing I Small lots, production will take place in small scale and transported in small scale so bearing goods to a consumer with large will involve repeated production and multiple shipping to meet up.