11. Change in the man-machine ratio with technological advances resulting in change ofcost structure.

11. Change in the man-machine ratio with technological advances result

1.	11. Change in the man-machine ratio with technological advances resulting in change ofcost structure.
Answer» Change in man- machine ratio to get technological advantage in any business, affects cost structure ,both in positive & negative ways , depending upon the nature of business & current market conditions.In most of cases, it helps to get good profit over the time like, there will be less expenditure on recruitment , PF , Medical expenses & professional taxes by reducing manpower whereas, machine may get out of version or cost may get reduced later in market and purchase rate will be too low than expected then there will be loss in cost calculation . Sometime management may face stiff challenge from worker union due to huge lay off .Also there is installation cost, which is high initially , which may affect production for few month & put hold on profit on production & sales .