Question

Write a short note on direct labour cost.

Answer 1

1. Direct labour is defined as labour that is used actively and directly in the production of a certain good, and the expense associated with it is known as direct labour costs.
2. Direct labour expenses can be easily and precisely linked to certain items.
3. For example, a carpenter's pay.
4. Direct labour includes labour engaged in actual production of the product.
5. Direct labour includes labour engaged in aiding production by supervision, maintenance, etc.
6. Direct labour includes inspectors, analysts, etc., specially required for such production.