The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is
A) manufacturing overhead.
B) indirect materials.
C) indirect labor.
D) direct labor.

Question

Quizplus · Accepted Answer

Direct labor refers to the work of factory employees that can be physically and directly associated with converting raw materials into finished goods. Examples of direct labor include machine operators, assemblers, and quality control inspectors. This labor cost is considered a variable cost because it varies with the level of output produced.

The Work of Factory Employees That Can Be Physically and Directly