Melsoft Study

Direct labour cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service. Also, we can say it is the cost of the work done by those workers who actually make the product on the production line. What are examples of direct labour costs? The direct labour costs are those expenses that can be directly traced to production. XYZ, for example, pays workers to run machinery that cuts wood into specific pieces for chair assembly, and those expenses are direct costs.

KT0803 - Direct labour cost