Labor costs that are clearly associated with specific units of product because the labor is used to convert raw materials into finished products are called:
A) Finished labor.
B) All labor.
C) Direct labor.
D) Contracted labor.
E) Indirect labor.

Question

Quizplus · Accepted Answer

Direct labor costs are those that can be easily traced to a particular product or service. This includes the wages, salaries, and benefits paid to workers who are directly involved in the production of goods or services. Direct labor costs are considered a variable cost because they vary with the amount of production output.

Labor Costs That Are Clearly Associated with Specific Units of Product