Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed


The consequences of using direct manufacturing labour-hours as an allocation base in a machine-paced manufacturing environment are a



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5.9
The consequences of using direct manufacturing labour-hours as an allocation base in a machine-paced manufacturing environment are
a
Product managers make excessive use of external vendors to obtain parts with a high direct labour content.
b
Excessive attention is paid by manufacturing managers to control the direct manufacturing labour-hours relative to the attention paid to control the more costly categories of materials and machining.
c
Managers attempt to classify shop-floor personnel as indirect manufacturing labour rather than as direct manufacturing labour.


Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012

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