Service Often Requires Greater Labor Content, Whereas Manufacturing Is More

question 23

True/False

Service often requires greater labor content, whereas manufacturing is more capital intensive.

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Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash at market value, often used for short-term investments.

Current Liabilities

Obligations or debts a company is expected to pay off within a year.

Operating Cycle

The time period it takes for a company to purchase inventory, sell products, and convert sales into cash.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or the operating cycle, whichever is longer.