Which type of industry has labor costs that make up a large share of total expenses?

• A. Labor-Intensive Industry
• B. Tech-Intensive Industry
• C. Capital-Intensive Industry
• D. Automated Industry

Answer: (A)

Labor-intensive industries are ones where human labor accounts for a large portion of production costs. When many steps require manual work, supervision, or direct service to customers, wages and benefits dominate the expense structure, so labor costs make up a large share of total expenses. In contrast, tech-intensive industries rely more on advanced technology and skilled knowledge, shifting costs toward development and equipment; capital-intensive industries incur big upfront costs for machinery and facilities; automated industries reduce the need for human labor, lowering the share of labor costs. Therefore, the scenario described fits labor-intensive industries.