Which statement accurately describes Direct Labor?

Direct labor refers specifically to the work performed by employees who are directly involved in the manufacturing of finished goods. This includes tasks that are integral to the production process, such as assembly line work or machine operation. These labor costs can be traced directly to specific products, which makes them a key component of a company's cost of goods sold.

In contrast, the other options pertain to different concepts within cost accounting. The cost of materials used in production relates to direct materials, which are the raw inputs necessary for manufacturing. Costs associated with indirect employees generally refer to indirect labor, which cannot be directly allocated to a specific product or service, such as maintenance staff or supervisory roles. Lastly, total labor costs of all employees include both direct and indirect labor, making it broader than what direct labor specifically encompasses.