Direct labor expense is that amount which is paid to workers who are involved in production of goods in factory and their salary or wages are part of it.
Direct labor and direct materials are the two main components of prime cost. Another component of prime cost is direct expense.
indirect-expense
Following are direct costs of shoe manufacturing business:1 – Leather (Direct material)2 – Workers salary on machine (direct labor)3 – Electricity expense etc
Following are direct costs of shoe manufacturing business:1 – Leather (Direct material)2 – Workers salary on machine (direct labor)3 – Electricity expense etc
Yes direct costs are expense when they are occurred and benefit of which are taken by company.
Direct labor which do not vary with level of production is fixed direct labor while labor vary with change in production is variable direct labor.
fuel is a direct expense.direct expense is an expense which can be directly related with production.hence it is recorded as an direct expense in trading account.
direct expense
insurance is an indirect expense.............
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
Direct labor is labor that directly interacts with customers in the service industry. For instance, waitresses are considered direct labor.
Direct material is material that is contained in the final product. Direct labor is labor that ultimately forms the final product.