ECONOMICS

Detailed explanation-1: -Indirect labor: Indirect labor is the labor of those who are not directly involved in the production of the products. An example would be security guards, supervisors, and quality assurance workers in the factory. Their wages and benefits would be classified as indirect labor costs.

Detailed explanation-2: -Indirect labor cost refers to wages paid to employees who perform duties that aid others in producing goods and performing services. It is the cost of labor that is not directly linked to production. Examples of indirect costs include purchasing of office supplies, advertisement, and employee insurance.

Detailed explanation-3: -Examples Direct labor includes machine operators, packers, assembly line workers etc. Indirect labor includes housekeeping and maintenance staff, security, accounts staff etc.

Detailed explanation-4: -Indirect labor refers to employees who support direct labor and the overall enterprise. They perform background or overhead functions rather than directly contributing to production. As such, the work performed by indirect employees can’t be directly applied to the revenue of a service or product.