In an automobile manufacturing plant, the assembly-line workers are considered to be direct labor cost.
Direct labor cost
Direct labor cost is wages that are incurred in order to produce goods or provide services to customers. The total amount of direct labor cost is much more than wages paid. It is assigned to a particular work order, or provision of a service.
It also includes the payroll taxes associated with those wages, plus the cost of company-paid medical insurance, life insurance.
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