Over the past few decades, the cost structure of manufacturing companies has shifted

Over the past few decades, the cost structure of manufacturing companies has shifted

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. What caused this to happen? What would explain the drastic change in cost structure? Which industries would be most affected by this change?

2 paragraphs- include references

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The cost structure has dynamically changed, with the fixed costs having the highest figures in the manufacturing costs. This is particularly attributed to a number of reasons.Usually; the items attributed to fixed costs have continued increasing with time. Forinstance, rents and rates and electricity. These are essentially fixed costs. Rent has increased gradually over time. Since it is a fixed cost, it makes the overall…………………….

APA

264 words