direct cost


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direct cost

A cost that can be directly related to producing specific goods or performing a specific service. For example, the wages of an employee engaged in producing a product can be attributed directly to the cost of manufacturing that product. Certain other costs such as depreciation and administrative expenses are more difficult to assign and are not considered direct costs. Compare indirect cost.

direct cost

or

prime cost

the sum of the DIRECT MATERIALS cost and the DIRECT LABOUR cost of a product. Direct costs tend to vary proportionately with the level of output. See COST.

direct cost

the sum of the DIRECT MATERIALS cost and DIRECT LABOUR cost of a product. Direct cost tends to vary proportionately with the level of output. See VARIABLE COST.
References in periodicals archive ?
If you sell enough to cover direct costs and overhead, you've broken even, and hopefully taken a decent salary home, too.
Their weighted average direct costs rose and productivity fell in servicing last year, as waves of payoffs and loan setups tested servicing shops around the country.
75 percent of the average annual qualified direct costs for SUB or severance benefits for any two of the immediately preceding seven taxable years; and
Centers that choose to apply for a Community Outreach and Education Core are eligible for additional $100,000 direct costs.
direct cost categories including one for all "insurance required by reason of the performance of the extra work") as compensation for all other items of cost or expense including administrative, overhead, superintendence, and small tools;
In a sister survey of business executives from diverse locations, company sizes and industries, the insurer found that businesses faced between $2 and $5 of indirect costs--mainly, lost productivity and overtime--for each $1 of direct costs.
He noted three benefits from improved workplace safety: It reduces employee pain and suffering; helps avoid the direct cost of workplace injuries -- such as wage replacement payments and medical care expenses; and prevents the indirect cost of the accidents, such as lower morale, lost productivity and the cost of hiring or training overtime or temporary replacement workers.
Many companies and analysts believed that direct cost was the most important factor to consider in evaluating a mortgage servicer's performance.
However, the court explained that the consumer must bear the direct cost of returning the goods.
Liberty Mutual identified the leading causes of workplace injuries and illness and associated direct cost, using its own claims data and findings from the Bureau of Labor Statistics and the National Academy of Social Insurance.
A new study from Computer Economics finds that direct cost damages from malware attacks have been declining worldwide over the past two years.