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Over the past few decades, the cost structure of manufacturing companies has shifted. In the early 1900s, direct material costs were substantial while fixed costs represented a small fraction of total manufacturing costs. However, the cost structure has reversed and now fixed costs make up the majority of total manufacturing costs. 1) Do you think that businesses should focus on advances that cost less money, or keep using technology that changes everyday to increase profit? Also, how do think businesses swill operate in the next 5 years, will fixed costs still be the major component of driving sales in manufacturing? 2) Would quality inspection costs be direct or indirect? Production workers’ holiday and vacation pay?
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