Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 13)

Which of the following best describes the term 'indirect labor'?

Labor that directly converts raw materials into finished goods

Labor costs of the factory's maintenance staff

Labor costs that are variable in nature

Labor costs that are fixed in nature

Explanation

Indirect labor includes wages of employees who support the production process but do not directly work on the product itself (e.g., maintenance staff).

Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 13)

Explanation

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