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Difference between Direct labour and Indirect labour
Direct labour:-
Labour which plays an active and direct part in the production of a particular commodity is called direct labour. Direct labour costs are, therefore specifying and conveniently traceable to the specified product. Direct labour is also described as process labour, productive labour, operating labour, etc.
Indirect labour
Labour employed for the purpose of carrying out tasks incidental of goods produced of services provided, is known as indirect labour. Such labour does not alter the construction, composition or condition of the product. It can't be partially traced to a specific unit of o/p. Wages of store keepers, foreman, time keepers, directors fees, salaries of the salesman etc are all examples of the indirect labour costs.
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How do the different cost classifications can assist the management
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