Managed Sales And Use Tax Audit Programs Carried
InterestsIndirect Labor – Definition In accounting, indirect
labor is a category of indirect cost. Indirect labor costs refer
to labor costs that are incurred during a service or production
process, but are not directly traceable to a cost object.
Indirect labor costs are considered overhead costs and treated
accordingly.Indirect Labor – Example It is not always easy to
distinguish between direct and indirect labor costs. Some labor
costs may be incurred during the production process or while
providing services, but still may be considered indirect because
they are not readily applicable or not conveniently traceable.
Examples of indirect labor costs include, for example, the cost
of an employee overseeing machines in an automated production
process. The employee must oversee the machinery and equipment
in the production process, but because the employee is not
actually engaged in the production process the relevant labor
costs are considered indirect labor cos