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Indirect labor costs make the production of cost objects possible, but aren't assigned to a specific product. For example, clerical assistants who help maintain the office support the company as a whole instead of just one product line. Thus, their labor can be counted as an indirect cost. Other common indirect costs include advertising and marketing, communication, fringe benefits such as an employee gym, and accounting and payroll services. Much like direct costs, indirect costs can be both fixed and variable.
Direct Labor Cost. Direct labor describes workers that are directly involved in the production of goods or the performance of services. For example, workers at a factory who assemble, machine, paint or otherwise help to physically produce products perform direct labor.ndirect labor cost describes wages paid to workers that perform tasks that do not directly contribute to the production of goods or performance of services, such as support workers who help enable others to produce goods.