Before automation became more prevalent, overhead was often calculated and allocated as a function of direct labor
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Before automation became more prevalent, overhead was often calculated and allocated as a function of direct labor costs or direct labor hours. Discuss whether you feel this method of allocation is still relevant in an automated process. What would be another method of allocation that could be used in an automated environment?
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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