Question

Managing and sustaining product diversity requires many more overhead resources such as production schedulers and product design engineers. The costs of these resources have no obvious connection with direct labor.

Ture or False

Answer 1

Answer:

True

Explanation:

Direct labor costs are the wages, and other salary expenses, paid to workers who directly participate in the production of the products.

Production schedulers, and product design engineers are not direct labor because they do not take direct part in the production process. They are both indirect labor costs, or overhead instead.

Specially product design engineers who might be paid for designing a product that may never even be produced outside of a few initial tests.