Question

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is:

a) indirect labor
b) manufacturing overhead
c) indirect materials
d) direct labor

Answer 1

The work of factory employees directly involved in making finished goods is classified as direct labor, which is distinct from indirect labor and is crucial in the manufacturing process and cost calculations.

Step-by-step explanation:

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is known as direct labor. This term refers to the labor costs for workers who are actively engaged in the production process, such as assembly line workers who are involved in making the actual products. Unlike indirect labor, which might be associated with support staff and cannot be easily traced back to specific goods, direct labor is an essential component in manufacturing and calculating the cost of goods sold (COGS).