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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.
Workers on an assembly line are considered Direct Labor Indirect labor is not Direct labor as these workers do not actually make the product: Maintenance crews and supervisors are Indirect Labor.Indirect Labor is included in overhead and therefore is an indirect cost rather than a direct cost...ating Newest Oldest. Best Answer: The supervisor's salary is an indirect cost. Even if he helps out on the assembly line, he does not spend 100% of his time doing so. He has to go to meetings, etc.