Question

Direct labour is an element of

Answer 1

Answer:

Direct labor costs include the wages that are paid to employees that physically handle the product. For this reason, direct labor is also referred to as touch labor. Indirect labor costs are any other wages and salaries related to production, but are not traceable back to units of product.

Answer 2

Prime cost.

In the preparation of the cost sheet, we need to calculate, first of all, prime cost.  Prime cost is known as the direct cost because it includes the primary identifiable costs which include human touch such as direct material, direct labor, direct expenses. These costs can be calculated easily because their per-unit value is already known to the entrepreneur that's why it is known as direct or prime cost.

Prime cost = direct material + direct labor + direct expenses.