Which of the following best describes the relationship between manpower and equipment/material costs?

• A. Manpower accounts for 40% and equipment/materials 60%
• B. Manpower accounts for 60% and equipment/materials 40%
• C. Manpower accounts for 50% and equipment/materials 50%
• D. Manpower accounts for 70% and equipment/materials 30%

Answer: (A)

The main idea here is how costs break down between people and the tools, machines, and materials used. Describing manpower as 40% and equipment/materials as 60% means the budget relies more on buying and maintaining equipment and materials than on paying workers. In contexts with heavy machinery, bulk materials, or automation, this heavier share for equipment and materials is common, and it guides where you focus efficiency efforts—equipment uptime, procurement, material usage, and throughput.

If labor were the larger share, the emphasis would shift to boosting productivity through training, scheduling, and wage management; if the shares were equal, neither side would clearly dominate the cost drivers. That’s why the 40% manpower and 60% equipment/materials balance best fits scenarios where equipment and materials drive most of the expense.