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direct labor

   Also found in: Dictionary/thesaurus, Acronyms 0.04 sec.
direct labor [də′rekt ′lā·bər]
(industrial engineering)
The labor or effort actually producing goods or services.


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By developing a system to allocate these costs to jobs based on direct labor hours or some other appropriate allocation method, you'll have a better understanding of what jobs cost in "real time.
The TCO methodology examines three major cost categories: annualized technology costs, direct labor and indirect labor:
Chasing the lowest direct labor cost alone is typically not the best reason for choosing a geography, since direct labor costs do not comprise a major percentage of the costs of global manufacturing.
 
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