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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.
The sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is broken into direct and indirect costs. Direct costs include wages for the employees physically making a product, like workers on an assembly line.Indirect costs are associated with support labor, such as employees that maintain factory equipment but don't operate the machines themselves.hen manufacturers set the price of a good they take the cost of labor into account. This is because they need to charge more than that good's total cost of production.