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

Question

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?

I would just like to compare to my ow answers to see if Im on the right track.  I appreciate any help. Thanks!

Explanation / Answer

Transportation, It is much cheaper to ship goods now. Mechanization, One man produces more raw materials. 1950 was the year 1/2 of American farms became Mechanized We shot the mule and bought a tractor. Increased yields by 3.

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