Question

Indirect labor includes: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Answer 1

Complete Question:

Options:

a) labor of employees working directly on the product

b) labor of the maintenance employees

c) labor of the clerical staff

Answer:

Indirect labor includes:

b) labor of the maintenance employees

c) labor of the clerical staff (factory)

Explanation:

Indirect labor is the cost of labor for all those who contribute to the production of a product, but  indirectly.  These include the labor costs of equipment and factory maintenance employees, factory clerical staff, supervisors, and managers, product inspectors and quality controllers, etc.  The determining factor is the level of involvement: direct or indirect or outside production.  If it is direct or outside production, it is not part of indirect labor.