Final answer:
A factory supervisor's salary is not a direct labor cost; it is an indirect labor cost and considered overhead since the supervisor oversees the production process rather than directly producing goods or services.
Step-by-step explanation:
The question asks whether a factory supervisor's salary is a direct labor cost. The answer is False. Direct labor costs are those costs that can be directly tied to the production of specific goods or services. They include the wages of the workers who are directly involved in the production process. On the other hand, a factory supervisor's salary is considered an indirect cost since supervisors do not directly work on the production of specific goods or perform the services themselves but rather oversee the production process. Therefore, the salary of a factory supervisor is generally categorized as overhead or indirect labor, rather than direct labor.