Definition of Direct labor:
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.
Labor employed by the authority commissioning the work, not by a contractor.
Labor involved in production rather than administration, maintenance, and other support services.
How to use Direct labor in a sentence?
- 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.
- 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.
- 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.
- You need to factor in the direct labor cost any time you are thinking about producing a lot of something.
- 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