Direct Labor refers to the work performed by employees who are directly involved in the production of goods or services. This includes tasks such as assembly, manufacturing, and quality control. The costs associated with direct labor are typically variable, meaning they fluctuate with the level of production. Direct labor costs are a key component of cost accounting and are used to determine the overall cost of a product. By tracking these expenses, businesses can better understand their profitability and make informed decisions about pricing and production efficiency.