Expenditures for labor that are directly applied in the creation or delivery of the product or service are called:
A)raw material costs.
B)fixed costs.
C)supportive supplies costs.
D)direct labor costs.
E)indirect labor costs.

Question

Quizplus · Accepted Answer

Direct labor costs are expenses incurred for labor directly involved in the creation or delivery of a product or service. This includes wages, salaries, benefits, and other related costs for employees who are directly involved in producing or delivering the final product or service. Direct labor costs are one of the main components of the cost of goods sold (COGS) and are used to calculate the gross profit margin of a business.

Expenditures for Labor That Are Directly Applied in the Creation