The difference between direct and indirect labor ...
www.accountingtools.com › articles › the-differenceDec 24, 2021 · The difference between direct and indirect labor. April 14, 2021. / Steven Bragg. The difference between direct labor and indirect labor is that only labor involved in the hands-on production of goods and services is considered to be direct labor. All other labor is, by default, classified as indirect labor. This distinction is important from an accounting perspective, since the two types of labor are treated differently.