For a manufacturing business, which of the following would be considered a direct labor cost?
A)Wages of the assembly line staff
B)Wages of the factory janitors
C)Wages of the factory manager
D)Salaries of the internal auditors

Question

Quizplus · Accepted Answer

Direct labor costs are those costs that are directly tied to the production of goods or services. The wages of the assembly line staff are directly involved in the manufacturing process and are thus considered a direct labor cost. Wages of factory janitors, factory manager, and internal auditors are not directly involved in the production process and are considered indirect labor costs.

For a Manufacturing Business, Which of the Following Would Be