Which labour cost is included in indirect labour?
A) the salary of the CEO
B) the salary of the factory supervisor
C) the wages of the production line worker
D) the salary of the vice-president of marketing

Question

Quizplus · Accepted Answer

The salary of the factory supervisor is included in indirect labour as they are not directly involved in the production process but oversee and manage the production workers. The other options (A, C, and D) are all salaries or wages of employees directly involved in either higher management or production work, which would be considered direct labour.

Which Labour Cost Is Included in Indirect Labour