ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -2. Direct labor. Direct labor costs are the wages, benefits, and insurance that are paid to employees who are directly involved in manufacturing and producing the goods – for example, workers on the assembly line or those who use the machinery to make the products.

Detailed explanation-3: -What is Direct Labor? Direct labor refers to the salaries and wages paid to workers directly involved in the manufacture of a specific product or in performing a service. The work performed must be related to the specific task.

Detailed explanation-4: -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.