Wages paid to those employees who devote their time to converting the materials into finished goods are called

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Wages paid to employees who are directly involved in the production process of converting materials into finished goods are called direct labor. Indirect labor refers to wages paid to employees who are not directly involved in the production process, such as maintenance staff or supervisors. Direct materials refer to the raw materials that are used in the production process. Indirect materials refer to materials that are not directly used in the production process, such as cleaning supplies or office supplies.

Wages Paid to Those Employees Who Devote Their Time to Converting