What would explain the drastic change in cost structure


Over the past few decades, the cost structure ofmanufacturing companies has shifted. In the early 1900s, directmaterial costs were substantial while fixed costs represented asmall fraction of total manufacturing costs. However, the coststructure has reversed and now fixed costs make up the majority oftotal manufacturing costs. What caused this to happen? What would explain the drastic change in cost structure?

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Accounting Basics: What would explain the drastic change in cost structure
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