L

Labour Cost An Operations Management term related to cost analysis; the price paid in return for the work done by an employee; a few examples include wages, salaries, commissions, bonus, etc. of an employee; classified into direct labour cost and indirect labour cost; direct labour cost is directly related to the manufacture of a product, and its examples include wages of a welder fabricating a structure or wages of construction workers; indirect labour cost is not directly related to the production of a product but is essential for the progressive movement and handling of the product to the point of dispatch, and its examples include the cost incurred on maintenance men, helpers in a machine shop or foundry shop or machine setters, etc.