COST ACCOUNTING
COST TERMINOLOGY
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Indirect labour
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Direct labour
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Indirect expenses
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Direct expenses
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Detailed explanation-1: -Indirect Labour is that labour which is not directly engaged in the production of goods and services but which indirectly helps the direct labour engaged in production. The examples of indirect labour are supervisors, sweepers, cleaners, time-keepers, watchmen etc.
Detailed explanation-2: -Direct labor is production or services labor that is assigned to a specific product, cost center, or work order. When a business manufactures products, direct labor is considered to be the labor of the production crew that produces goods, such as machine operators, assembly line operators, painters, and so forth.
Detailed explanation-3: -Indirect labor refers to employees who are not involved in planning or construction projects. However, they are involved in the day-to-day running of the business. This includes human resources, administration, accountants, customers relations, etc.
Detailed explanation-4: -Examples of indirect labour include maintenance personnel, cleaning staff, and senior supervisors, such as foremen.