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Direct Labor vs Indirect Labor
ILMA
Direct labor
Direct labor is the cost of any labor that supports the production
process, but which is directly involved in the active conversion of
materials into finished products.
or
Wages paid to the people who are directly involved in the
manufacturing process.
Examples include assembly line workers, production supervisors,
delivery truck drivers and quality control inspectors.
Indirect labor
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.
or
Wages paid to the people who are not directly involved in the manufacturing
process.
• Examples of indirect labor positions are:
• Purchasing staff
• Materials handling staff
• Materials management staff

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Direct labor vs indirect labor

  • 1. Direct Labor vs Indirect Labor ILMA
  • 2. Direct labor Direct labor is the cost of any labor that supports the production process, but which is directly involved in the active conversion of materials into finished products. or Wages paid to the people who are directly involved in the manufacturing process. Examples include assembly line workers, production supervisors, delivery truck drivers and quality control inspectors.
  • 3. Indirect labor 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. or Wages paid to the people who are not directly involved in the manufacturing process. • Examples of indirect labor positions are: • Purchasing staff • Materials handling staff • Materials management staff