Indirect Labour

Posted in Human Resource Terms, Total Reads: 1120
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Definition: Indirect Labour

It constitutes of the labour that is not directly involved in the process of converting the raw material in the finished goods. For example, in the manufacturing of a car, the work of the workers working on the assembly line directly will be the direct labour.

On the other hand, the inputs of line managers, the maintenance staff, the administration staff, the security staff etc. would come under the category of Indirect labour.

While doing costing for any product, both the direct as well as the indirect labour is taken into consideration.


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