direct labor


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Related to direct labor: Indirect Labor

direct labor

[də′rekt ′lā·bər]
(industrial engineering)
The labor or effort actually producing goods or services.
References in periodicals archive ?
Companies shipping five to 10 pallets a day can expect a quick return on investment through decreases in product damage during shipment, reduced material consumption, and lower direct labor. The Sentry features heavy-duty components, steel construction, reliable electronics, and U.S.
The achieved direct labor multiplier of 3.09 is on the rise and closer to target than ever, net revenues are increasing, and expenses are holding steady.
Direct labor hours used to make chairs: 70 hours at $8.20 per hour for a total price of $574.
A business owner or manager should be able to track revenue, cost of goods sold and direct labor by customer by product, division, location, line of business or employee, whenever possible.
Of course, they are 100% complete as to direct materials (paper is the only material); however, they are, on average, only 50% complete as to direct labor and manufacturing overhead.
Simple recognition that the rules have changed and that managing energy usage with about the same degree of effort that management devotes to managing direct labor can produce savings of up to 10% of energy usage.
I believe with all the systems now available, we are approaching a time when we can begin to schedule and control major parts of the materials handling discipline, much as we do direct labor. Some companies are doing this to varying degrees.
Rich Kaestner, director of the Total Cost of Ownership Project at the Consortium for School Networking (CoSN), says people should also look beyond initial investments to life cycle costs, including direct labor such as maintenance, and indirect labor costs such as user downtime due to system failure.
1.199-3(g)(3), the in-whole-or-in-significant-part requirement is met if the taxpayer's direct labor and overhead related to a QPP item accounts for 20% or more of its COGS or, in a transaction without COGS (e.g., a lease, rental or license), direct labor and overhead account for 20% or more of the QPP's unadjusted basis.
Under the current warfare center cost model, cost is broken down into the following subcomponents: 49 percent direct labor; 25 percent direct material/travel/equipment; 25 percent overhead (including general and administrative (G & A) labor, production support labor, and overhead, analysis, business services, facilities ops/maintenance; and 1 percent investment/recoupment factor for nonzero net operating result.