Direct labor refers to the wages and associated costs of employees who are directly involved in the production of goods or services. This direct labor definition encompasses the compensation for workers who physically transform raw materials into finished products. It is a crucial component of manufacturing costs and is used to calculate the cost of goods sold. Understanding direct labor is essential for accurate cost accounting and budgeting.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
