A ________ company has the highest percentage of labor costs as compared to the other types of companies.

Question

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Service companies typically have a higher percentage of labor costs since their main output is typically provided through the actions of employees. Manufacturing companies can incorporate more automated processes which can reduce their percentage of labor costs in comparison, and merchandising companies have a higher percentage of costs attributed to inventory and product purchasing. While all companies may have high labor costs, service companies often have the highest percentage.

A ________ Company Has the Highest Percentage of Labor Costs