Differentiate between 'Capital intensive' and 'Labour intensive' industries?
Answers
Answered by
0
What is 'Capital Intensive'
Capital intensive refers to business processes or industries that require large amounts of investment to produce a good or service, and therefore have a high percentage of fixed assets, which are also known as property, plant, and equipment (PP&E). Companies in capital-intensive industries are often marked by high levels of depreciation
What is 'Labor Intensive'
Labor intensive refers to a process or industry that requires a large amount of labor to produce its goods or services. The degree of labor intensity is typically measured in proportion to the amount of capitalrequired to produce the goods or services; the higher the proportion of labor costs required, the more labor intensive the business
Capital intensive refers to business processes or industries that require large amounts of investment to produce a good or service, and therefore have a high percentage of fixed assets, which are also known as property, plant, and equipment (PP&E). Companies in capital-intensive industries are often marked by high levels of depreciation
What is 'Labor Intensive'
Labor intensive refers to a process or industry that requires a large amount of labor to produce its goods or services. The degree of labor intensity is typically measured in proportion to the amount of capitalrequired to produce the goods or services; the higher the proportion of labor costs required, the more labor intensive the business
Similar questions