Final answer:
The statement is true; drill bits primarily cut with their ends, while endmills can cut with both their ends and sides, enabling them to perform a variety of milling tasks beyond simple hole drilling.
Step-by-step explanation:
The statement that drill bits can only cut with their ends ("lips"), whereas endmills can cut with both their ends and their sides is True. Drill bits are designed to plunge directly into the material to create circular holes and primarily cut with their ends. Endmills, on the other hand, are more versatile tools that can cut laterally, or horizontally, as well as vertically. This allows them to not only drill into the material but also to cut shapes, profiles, and complex geometries, making them suitable for a wider range of milling operations.