Direct cost
A cost that can be easily and conveniently traced to a specified cost object.
Direct cost is a type of expense that can be traced directly to a product, service, or specific project. It is a cost that is clearly associated with a particular output or cost object. Examples of direct costs include raw materials used in the production of a product, direct labor expenses, and specific machine or tooling costs used for a particular project. These are expenses that can be directly assigned to a particular product or service and can help provide a clear understanding of the total costs associated with delivering a particular output.
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