direct labour

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Related to direct labor: Indirect Labor

direct labour

  1. that part of the labour force in a firm which is directly concerned with the manufacture of a good or the provision of a service. Direct labour cost depends on the hours of labour worked by factory operatives engaged directly in making a product. Provided that wage rates remain constant then direct labour cost will tend to vary exactly with output. See VARIABLE COST, STANDARD COST.
  2. workers employed directly by local or central government to perform tasks rather than such tasks being contracted out to private-sector companies. See CONTRACTING-OUT, INDIRECT LABOUR.

direct labour

  1. 1that part of the labour force in a firm that is directly concerned with the manufacture of a good or the provision of a service. Contrast INDIRECT LABOUR.
  2. workers employed directly by local or central government to perform tasks rather than contracting out such tasks to private-sector companies. For example, a local authority might employ its own permanent construction workers to repair council houses rather than putting such repair work out to local firms. See VARIABLE COST, PRIVATIZATION.
References in periodicals archive ?
The direct materials and direct labor variances would be calculated as follows:
Once the LER is in place for direct labor and administrative labor, the team can be held accountable to a measurable outcome to base pay adjustments and future hiring decisions.
Our task now (as a legion of cost accountants) is to account for the physical flow of airplanes, determine equivalent units in terms of direct materials, direct labor, and manufacturing overhead, compute costs per equivalent unit, and complete a process costing report for the assembly department using the weighted-average method.
A 1989 Price Waterhouse survey found that roughly 80% of their American manufacturing clients continued to use TCS with direct labor hours as the primary allocation method of overhead costs, despite fundamental changes in their core business processes.
Harvey goes on that we have surge capacity even working the 19 million direct labor hours this year and 25 million direct labor hours next year, within the work being performed currently.
The overhead rate is the percentage of total office overhead to total office direct labor. Overhead also includes that portion of principal's time that is not chargeable to projects.
The direct labor costs are obvious and are driven by how much will be saved as a result of eliminating salaries.
Overhead is still allocated based on direct labor (often requiring overhead rates of 600% or more because direct labor is so low); standard costing systems are still used to establish prices; complex systems are still used to value inventory; and financial accounting is still used to measure and monitor operations.
* A labor-cost pool based on direct labor time used.
It allows for the pricing of change orders through either (1) contractual unit prices, if any, (2) payment of the "actual and reasonable" cost of seven scheduled direct cost items (e.g., materials, direct labor, equipment related costs, sales and personal property taxes), plus a 10% markup for "overhead" items and a 10% profit factor, or (3) an agreed, negotiated fixed sum.
A 4-page brochure on in-machine CNC deburring of flat surfaces explains how to reduce direct labor while improving quality using Nylox abrasive nylon filament disc brushes.
For example, if you are abstracting data manually from a medical record, costs may include the direct labor of record abstraction as well as the simple costs of tools to document the data, such as a spreadsheet, database, or pencil and paper.