Basics:
Accounting Jobs:
Reports:
Software:
Contact Us:
Blog:
[
?
]
Subscribe To This Site
Indirect Labor
Indirect labor does not add value to the part itself, but is necessary to get the product to it's destination.
Some of the jobs that are in this classification ar
Machine Repair
Fork Truck Driver
Machine Set Up
Inspector
Tool & Die
This cost is actually part of the
burden
cost, but is a cost that is very important to understand on it's own:
The Cost Accountant analyzes the profitability of a particular part and needs to understand:
If a particular job is running as intended
If extra labor is being used
Why are extra people needed on this job?
If extra labor hours are now the standard, then the cost standards need to be adjusted.
Other cost elements:
Direct Labor
Material Cost
Burden
Administrative Cost
Return to the TOP of the page
Return from Indirect Labor to Accounting Cost Elements
Visit our cost accounting store
