Automazation

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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March 18, 2018 at 9:23 pm #442976
Anonymous
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why would the increase in Automazation lead to product under-costing?
All i know is that Automization is where robots and other systems are used to produce products with the minimal use of human labour and Product under-costing is when a product utilizes a fairly high level of resources but has a low total cost and that it could be due to the sales being less than the cost of the resources. But i’m not sure what else to say?
March 19, 2018 at 6:56 am #442994
John Moffat
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I am not sure what else to say either (and I am wondering where you found this question!). The production cost is likely to be lower with automisation, but the initial cost of acquiring the necessary equipment is likely to be high and needs covering.
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