ECONOMICS

Detailed explanation-1: -Direct labor: The workers who actually work with and process the different materials manually or with the aid of machines are known as “direct labor” or “productive labor.” From: Principles of Economics and Management for Manufacturing Engineering, 2022.

Detailed explanation-2: -What is direct labor? Direct labor refers to any employee that is directly involved in the manufacturing of a product. If your business manufactures bicycles, the employees producing the bicycles are considered direct labor. Assemblers, welders, painters, and machinists would all be considered direct labor.

Detailed explanation-3: -Direct labor is sometimes called touch labor, since direct labor workers typically touch the product while it is being made, e.g., labor costs of machine operators.

Detailed explanation-4: -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.