Question

Which of these are indirect labour?

A.

A. Inspection worker in inspection department

B.

B. Assembly worker in production department

C.

C. Storekeeper in a production company

D.

D. All of the above

Answer 1

OPTION - D. ALL OF THE ABOVE.

Indirect Labor are those who are indirectly involved in the conversion of raw materials into the finished goods in the production process. These involve the management personnel like supervisors, And includes personnel from quality control department, inspection department, purchase department, store keeping department,etc. All these personnel are indirect Labor.

Indirect labor cost are treated as a part of Factory Overhead Cost.

If you have any doubts please comment on the answer.