Asked by: Anwar Pilgermann
asked in category: General Last Updated: 28th May, 2020

What kind of cost is indirect labor?

Indirect labor cost describes wages paid to workers that perform tasks that do not directly contribute to the production of goods or performance of services, such as support workers who help enable others to produce goods.

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Moreover, is indirect labor a period cost?

Overhead or sales, general, and administrative (SG&A) costs are considered period costs. Other examples of period costs include marketing expenses, rent (not directly tied to a production facility), office depreciation, and indirect labor. Also, interest expense on a company's debt would be classified as a period cost.

Additionally, what is indirect labor? Indirect labor is the cost of any labor that supports the production process, but which is not directly involved in the active conversion of materials into finished products. Examples of indirect labor positions are: Production supervisor. Purchasing staff.

Thereof, which is an example of an indirect labor cost?

Indirect labor: Indirect labor is the labor of those who are not directly involved in the production of the products. An example would be security guards, supervisors, and quality assurance workers in the factory. Their wages and benefits would be classified as indirect labor costs.

What is direct and indirect labor cost?

Direct labor cost is easy to understand. It refers to the expenses, including wages and other benefits, that you incur for employees that directly work on the projects such as the laborer, rigger, foreman and pipefitter. Indirect labor refers to employees who are not involved in planning or construction projects.

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