direct labor

  

Definition

Employees or workers who are directly involved in the production of goods or services. Direct labor costs are assignable to a specific product, cost center, or work order.

Use direct labor in a sentence

  • You need to factor in the direct labor cost any time you are thinking about producing a lot of something.

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  • We had a lot of direct labor working for us and that made us all very relieved cause we knew we would get a lot more done.

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  • In cost accounting, direct labor costs of the production staff, materials and overhead are properly allocable in determining the overall cost to produce a given product.

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