Is Indirect Labor a Prime Cost

A prime cost is the total direct costs of production, including raw materials and labor. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs.

What kind of cost is indirect labor?

Indirect labor cost is the cost of labor that is not directly related to the production of goods and the performance of services. It refers to the wages paid to workers whose duties enable others to produce goods and perform services.

Is indirect Labour a product cost?

Example of Product Costs Company A is a manufacturer of tables. Its product costs may include: … Manufacturing overhead (indirect labor): The cost of wages and benefits for the security guards to overlook the manufacturing facility. Manufacturing overhead (other): The cost of factory utilities.