ECONOMICS

Detailed explanation-1: -Indirect labor is the cost to the company for employees who aren’t directly involved in the production of the product. For example, the salaries for security guards, janitors, machine repairmen, plant managers, supervisors, and quality inspectors are all indirect labor costs.

Detailed explanation-2: -Indirect labor is considered an overhead as these costs cannot be assigned to any one project or service.

Detailed explanation-3: -Indirect labor is the cost of any labor that supports the production process, but which is not directly involved in the active conversion of materials into finished products.

Detailed explanation-4: -The cost of labor is broken into direct and indirect (overhead) costs. Direct costs include wages for the employees that produce a product, including workers on an assembly line, while indirect costs are associated with support labor, such as employees who maintain factory equipment.