Direct labour cost refers to the expenditures on wages paid to operators who are directly involved in the production of a product, service, or cost unit. It's part of the direct cost of sales and can be measured through the time spent on activities and operators' pay rates.
Direct wages refer to the payments made to laborers who are directly involved in the production process of a good or service. These wages are part of the direct labor costs and play a crucial role in cost accounting and financial analysis.
