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Direct labour is labour directly involved in the manufacture of a good and can be easily traced to the product or service e.g. the hours spent by an architect on the preparation on a building plan. Indirect labour is all labour used in production that cannot be directly traced to the product e.g. the work by factory managers or cleaners.
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Prime cost and conversion cost?
Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs
Define direct and indirect labor cost in garment industry?
Define direct and indirect labour?"
How direct cost principle applicable to labor?
How can the direct and indirect cost principles applicable to labour?
Is indirect labor part of prime cost?
Only direct material and direct labor is part of prime cost while overheads are part of conversion cost so indirect labor is part of overheads so automatically part of conversion cost and not prime cost.
What is the definition of labor ratios?
cost relationship between direct and indirect.
Does prime cost include indirect cost?
prime costs only includes direct cost like direct material and direct labor.
Is indirect labor a part of prime cost?
Direct material and direct labor are the parts of prime cost while indirect labor is part of manufacturing overhead and manufacturing overhead is a part of conversion cost that's why indirect labor is not part of prime cost because it is that type of labor which is not directly identifiable with units production that;s why cannot charge directly to production units.
Direct and indirect labor costs?
Direct labor cost is that labor which directly related with manufacturing of products like machine workers etc while indirect labor cost is that labor cost which directly not manufacturing product but required as well like line mangers or factory supervisors salary etc.
Some examples of direct material cost and direct labor cost?
examples of dierect material,indirect,labour,and expenses cost
Is indirect labor a prime cost?
Indirect labor is that kind of labor which is not directly involved in making of unit of product that's why it is not a direct labor and that's why it is not prime cost of unit of product and that's why it is shown in overheads
Direct cost vs indirect cost?
Direct cost is that cost which is directly attributable to units of product like raw material and labor while indirect cost is not directly attributable like factory maintenance cost.
Is indirect labor a variable cost?
If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.
