Direct labor

Direct labor,

Definition of Direct labor:

  1. Employees or workers who are directly involved in the production of goods or services. Direct labor costs are assignable to a specific product, cost center, or work order.

  2. Labor employed by the authority commissioning the work, not by a contractor.

  3. Labor involved in production rather than administration, maintenance, and other support services.

How to use Direct labor in a sentence?

  1. If direct labour is being used instead of a recognised building contractor, mortgage providers may also insist upon some form of public liability or employers liability insurance.
  2. We had a lot of direct labor working for us and that made us all very relieved cause we knew we would get a lot more done.
  3. In service businesses like mine, direct labor is usually the largest component of the cost of sales, and you can use it to get a quick read on changes in your overall cost-of-sales number.
  4. You need to factor in the direct labor cost any time you are thinking about producing a lot of something.
  5. In cost accounting, direct labor costs of the production staff, materials and overhead are properly allocable in determining the overall cost to produce a given product.

Meaning of Direct labor & Direct labor Definition