The Meaning of Indirect Labor In Cost Accounting.
Indirect labor is that labor which is not directly engaged in the production of goods and services but which indirectly helps the direct labor engaged in production. Example of indirect labor are mechanics, supervisors, sweepers, foreman, watchman, cleaner, repairers etc. It may not be possible to classify individual workers on direct labor or indirect labor. For example, a worker who is engaged in actual production may some times be required to do supervisory work. In that case, the time devoted to actual production should be treated as direct labor and time spent on supervisory hour taken as indirect labor.