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Because, investment in Fixed cost (machinery etc) creates leverage...labor can be hired and fired when needed.

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14y ago

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What is the differentiate between labor and capital intensive technology?

By way of an example: Digging holes can be labor or capital intensive. You can use 1000 workers with cheap shovels (labor intensive) or 1 worker with an expensive "steam shovel" (capital intensive). Some things cannot be done either way like picking strawberries (labor intensive) or manufacturing microcircuits (capital intensive).


When would you use direct labor as cost driver?

In labor intensive industry direct labor cost is used as cost driver.


What companies do not use child labor?

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Why would use be made of an intensive labor force rather than using intensive technology?

Intensive labor force could put more emphasis on quality, whereas a ton of intense machinery would just do, do, do without any regard to quality that was not programmed into it.


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What do companies use offshoring to do?

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Why are some organisations capital intensive and others labor intensive?

labour intensive means use of manpower in production with little of technology while capital intensive means use of technology in production of a unit of output labour intensive means use of manpower in production with little of technology while capital intensive means use of technology in production of a unit of output


What are production strategies?

Production strategies that companies can use is chase strategy, level production, make to stock, make to order, and assemble to order. Different companies use different methods depending on their goals.


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Why is bio-intensive gardening use labor intensive rather than capital intensive?

Bio-intensive gardening is labor-intensive rather than capital-intensive because it emphasizes manual cultivation techniques, such as hand planting, weeding, and composting, which rely on human effort rather than machinery or chemical inputs. This approach prioritizes soil health and biodiversity, often using small-scale, intensive methods that require careful planning and management. Additionally, bio-intensive gardening typically uses resources like organic materials and heirloom seeds, minimizing the need for costly equipment or synthetic fertilizers. As a result, the focus is on sustainable practices that leverage human labor to enhance productivity and ecological balance.