Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 15 - No. 19)

What is the key difference between direct and indirect labor?

Direct labor costs are fixed, while indirect labor costs are variable.

Direct labor costs are easy to trace to a product, while indirect labor costs are not.

Direct labor is included in the prime cost, while indirect labor is not.

There is no difference

Direct labor is easily traceable to a product, while indirect is not.