what is direct manfacturing labor cost?

Answer 1

Direct manufacturing labor cost refers to the expenses incurred by a manufacturing company in paying its employees who are directly involved in the production process. These workers typically include machine operators, assembly line workers, and quality control personnel, among others. The cost of their wages, salaries, benefits, and other related expenses such as training, uniforms, and safety equipment are categorized as direct manufacturing labor costs. This cost is an important component in calculating a company's total production cost and in determining profitability.