Final answer:
The statement that employee self-training time on new technology is a direct operating cost is false; it's actually an indirect cost. Direct costs are immediately related to production, while self-training is more about personal development.
Step-by-step explanation:
The time that employees devote to self-training on new technology is false when considered as an example of direct operating costs. Direct operating costs are usually associated with the day-to-day operation of the business, including costs such as raw materials and labor that can be directly tied to the production of a product or service. In contrast, the time spent on self-training, although it may contribute to the efficiency or effectiveness of production over time, is considered an indirect cost because it is not tied directly to the production process but to the employee's personal development and the overall skill level of the workforce. From the information provided in the examples, it is clear that production technology costs depend on the combination of labor, physical capital, and technology. These examples illustrate how wage increases and machine costs impact the selection of low-cost production technology. Example A demonstrates that technology 1 is the choice when wages are lower, whereas example B shifts the advantage to technology 2 with higher wages, and eventually technology 3 becomes preferable if wages continue to rise significantly.