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Indirect labor costs include: factory security guard wages and assembly-line supervisor salary
What is indirect labor cost?
Indirect labor cost is the cost of labor that isn't directly related to the production of goods or the provision of services. It refers to the payment made to workers whose duties enable others to produce goods and provide services.
Indirect labor is the labour done by people who are not directly involved in the production of the commodities. Workers in a plant's quality assurance department, managers, and security personnel are a few examples. Their pay and benefits would be considered indirect labor costs.
"Indirect labor" refers to tasks performed by employees that enhance the operation of the company without directly producing goods or services. They are employed in industries including administration, accounting, and engineering.
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