D
- Direct Labor
- Labor expenses that are directly attributable to producing a product or delivering a service and that are typically included in overall Direct Expenses. For a bakery, the Direct Labor would typically be the bakery staff that is directly involved in the baking process. For a lawn mowing service, the Direct Labor would typically be the crew that does the mowing. Labor that is not directly attributed to producing a product or delivering a service is called Indirect Labor.
I
- Indirect Labor
- Labor expenses that are not directly attributable to producing a product or delivering a service and that are typically included in overall Indirect Expenses or Overhead. Indirect Labor expenses are typically management salaries for management staff that oversee all operations, rather than the production or delivery of a particular product or service. Labor expenses that are directly attributable to producing a product or service are by contrast called Direct Labor.