Answer:
Direct labor.
Step-by-step explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Other than raw materials and manufacturing overhead, the third component of inventories for manufacturing companies is direct labor.
Direct labor cost can be defined as the amount of money associated with paying of workers wages who are saddled with the responsibility of producing the goods and providing services.