direct cost

(redirected from prime cost)
Also found in: Dictionary, Encyclopedia, Wikipedia.

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 ?
Prime costs of clinical laboratory services in Tehran Valiasr Hospital in 2009.
Nevertheless, the application of the model contributed to refine the profit object calculations by making the prime cost structure more transparent.
Keywords: prime cost sums, contract sums, cost ratios, variability.
The prime cost ratio is a very important tool for monitoring a food service operation.
20) This prime cost sum of 20,769 [pounds sterling] for the concrete work was incorporated as a condition of tendering.
The existing grievance is not a newly discovered one, for in our annual review of the provision trade at the end of last December, we remarked that the year of 1901, like its predecessor, had been clouded over by an almost uninterrupted spell of unprofitable rates at prime cost.
The so-called 'fixed contract' will contain provisional sums to cover circumstances which may not be foreseen, such as foundation difficulties, some provision for extra works, and prime cost provisional sums to cover the cost of sub-contracts to be let later.
Racking durability is a key criterion for Rocco, as it is for most food processors and especially in freezer and refrigerated applications where energy is a prime cost, Brown says.
Racking durability is a key criterion for Rocco, as it is for most food processors--especially in freezer and refrigerated applications where energy is a prime cost, Brown says.
The result is severe erosion of margin to the extent that now the prime cost of the product exceeds its net selling price
The ICAT method deals with the three prime cost aspects of laboratory analysis: instrument-related costs, direct material costs, and labor costs.
With the exchange rate between the current money of Amsterdam and the silver currency of New Netherland at 20 percent and the costs of shipping at 50 percent of the prime cost (p.