Labor costs in production can be:
A) Direct or indirect.
B) Indirect or sunk.
C) Direct or payroll.
D) Indirect or payroll.
E) Direct or sunk.

Question

Quizplus · Accepted Answer

Labor costs can be either direct or indirect. Direct labor costs are those that can be directly attributed to the production of goods or services, such as wages paid to workers who build a product. Indirect labor costs are those that are not directly related to production, but still necessary for the operation of a company, such as salaries for maintenance or administrative staff.

Labor Costs in Production Can Be