Direct labor
Direct labor is the wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Direct labor. The wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Direct labor. The cost of compensating employees who physically convert raw materials into the company's products; labor costs that are directly traceable to the finished product.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
