indirect labor

  

Definition

Employees or workers (such as accountants, supervisors, security guards) who do not directly produce goods or services, but who make their production possible or more efficient. Indirect labor costs are not readily identifiable with a specific task or work order. They are termed indirect costs and are charged to overhead accounts.

Use indirect labor in a sentence

  • At our plant most of our employees are direct labor and a smaller portion are indirect labor that are not directly involved in the production process.

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  • The cleaning staff at my school provide invaluable indirect labor, because they keep the classrooms clean and free from needing repairs.

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  • You may want to bring on some people that do indirect labor so that you can have the support you need around the office.

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