Asked by Camille Esselin on Apr 26, 2024
Verified
Both direct labor cost and indirect labor cost are product costs.
Direct Labor
Labor costs that are directly attributable to the production of goods or services, such as wages for workers manufacturing a product.
Indirect Labor
Labor costs not directly associated with the production of goods or services, such as salaries of supervisors or maintenance staff.
Product Costs
All costs directly tied to the creation of a product, including materials, labor, and allocated overhead.
- Understand the distinction between direct and indirect costs in the context of product costs.
Verified Answer
Learning Objectives
- Understand the distinction between direct and indirect costs in the context of product costs.
Related questions
Direct Materials and Direct Labor Are the Only Product Costs
Nonmanufacturing Costs Are Generally Classified into Two Categories: Selling and ...
A Factory Supervisor's Salary Would Be Classified as an Indirect ...
Indirect Costs Can Be Specifically Traced to a Cost Object
Which of the Following Statements Is True ...