What Is The Difference Between Direct Labor And Indirect Labor?
Direct labor refers to the employees who are involved in the production process and directly contribute to creating a product or service. They are either hands-on or supervise the hands-on work. Indirect labor, on the other hand, includes employees who support the production process, but do not directly contribute to creating a product or service. For example, janitors, security guards, and supervisors who do not participate in the physical production process are considered indirect labor.