In a manufacturing plant, which type of employee wage is an example of indirect labour?
A) Chief operating officer's salary
B) Machine operator's wages
C) Plant manager's salary
D) Salesperson's commissions

Question

Quizplus · Accepted Answer

Indirect labor costs are those that are not directly tied to the production of a specific product or service. The salaries of managers, supervisors, and other administrative staff fall under this category. Choices A, B, and D are all examples of direct labor, as they are directly involved in the production process.

In a Manufacturing Plant, Which Type of Employee Wage Is