Which of the following is an example of direct labor cost in a factory?
A)Wages of assembly line personnel
B)Salary of vice president of production
C)Wages of factory security guard
D)Salary of production manager

Question

Quizplus · Accepted Answer

Direct labor costs are the wages and benefits paid to employees who directly work on the production of goods or services. Wages of assembly line personnel are an example of direct labor cost as they contribute directly to the production process. The salary of the vice president of production, wages of the factory security guard, and the salary of the production manager do not directly contribute to the production process and are therefore not direct labor costs.

Which of the Following Is an Example of Direct Labor