The correct answer is: A. labour which can be conveniently associated with a particular cost unit.
Direct labor is the labor that can be directly associated with the production of a good or service. It is the labor that is directly involved in the transformation of raw materials into finished goods. Direct labor costs are typically included in the cost of goods sold on a company’s income statement.
Option B is incorrect because not all labor that completes the work manually is direct labor. For example, the labor of a quality control inspector is not considered direct labor, even though it is manual labor.
Option C is incorrect because permanent labor in the production department is not always direct labor. For example, the labor of a production manager is not considered direct labor, even though it is permanent labor in the production department.
Option D is incorrect because labor that is recruited directly and not through contractors is not always direct labor. For example, the labor of a security guard is not considered direct labor, even though it is recruited directly and not through contractors.