ICWA Question:

Labor cost is the cost of remuneration paid to the employees of the organization. It can be direct or indirect. Direct labor cost indicates that labor cost which can be identified with the individual cost center and is incurred for those employees who are engaged in the manufacturing process. Indirect labor cost indicates that labor cost which cannot be identified with the individual cost center and is incurred for those employees who are not engaged in the manufacturing process but only assist in the same.