Wages paid to those employees who devote their time to supervision or to work of a general nature are referred to as

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Wages paid to employees who are not directly involved in the production of goods or services, but rather perform tasks such as supervision, maintenance, or support, are considered indirect labor costs. Indirect labor costs are not directly traceable to the cost of each unit produced, but they are necessary for the overall operation of the business. Direct labor, on the other hand, refers to the wages paid to employees who are directly involved in the production process and whose labor can be easily traced to the cost of each unit produced. Direct materials are the raw materials and components used in the production process, while indirect materials are supplies and materials that are not directly used in the production process but are necessary for the operation of the business (such as cleaning supplies or office supplies).

Wages Paid to Those Employees Who Devote Their Time to Supervision