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 ?
Direct costs for career development activities should not exceed $50,000.
This would be simple enough, but for one conspicuous, recent omission from the direct costs category--all insurance charges for the insurance coverages required in the City's standard insurance coverage Schedule A.
The overall direct cost for government products in 1995 was $55, while conventional servicing direct costs were $10 cheaper on a per-loan basis.
Billions) % of Workers' comp Accident workers' comp direct cost causes direct cost paid paid in U.
As a result, he said, the decline in direct cost damages may not be all good news.
If the client cannot meet the necessary two foreign direct cost tests from the "preferred" list above, its tax adviser may need to explore these two relatively unused foreign direct cost categories:
Consequently, the direct cost of billable supplies typically absorbed by a provider that does not participate in Part B would be billable to the Medicare program.
According to Maurizio Tomio, manager, optical networks testlab for Swisscom, the time and direct cost savings are enormous.
Direct costs are charged directly to the contract; indirect costs go into cost pools, such as general and administrative, and are allocated to the contract only via some kind of rate mechanism.
Global enterprises, such as Bristol-Myers Squibb, Coleman, Emerson, Moen, Hamilton Sundstrand, Siemens, Timex, Volvo, Iowa State University and others, use Centric's solutions to achieve top line revenue growth, direct cost reductions and insight into capital programs.
For the NIH Exploratory/Developmental Grant (R21), applicants may request direct costs in $25,000 modules, up to a total direct cost of $275,000 for the combined two year award period.
The company's robust portfolio of solutions, including network optimization services and iTEMize - a web-based telecom inventory and expense management solution - result in direct cost savings for NetGain's clients.