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 ?
Costs of breast cancer screening method in Fars province in 2007 The study population (on the basis of Diagnostic services Fars province statistical calendar in 2005) Breast sonography 265627 (age: 25-34) Mammography 456508 (age: 35+) The prime cost per each patient Diagnostic services IRR $ Breast sonography 31361 3.14 Mammography 109845 10.98 The total cost for breast cancer screening Diagnostic services IRR $ Breast sonography 8,340,687,847 834,068.78 Mammography 50,124,578,460 5,012,457.84 Table 3.
The prime cost of transport profit object j can be calculated as follows ([C.sub.d]--direct cost, [C.sub.id]--indirect costs collected in the cost objects):
According to McCarten, Marien deflated the cost of goods sold by manipulating what the SEC called the "prime cost of sales." In this case, he had to falsify raw-silk contracts and prices from the commission knitters and throwsters (producers and exporters of raw silk) with whom IHM dealt.
They found that direct material costs were easily ascertainable and named the material and labour costs of an item "prime cost".
Abstract: This paper investigated the variability levels of prime cost sums in building projects in order to establish the reliability of such estimates in bills of quantities.
The calculated prime cost of high-calorific fuel (oil + gas), produced from Belarussian oil shales using gas-generating technologies, is about 350 US $ per tonne at the prime cost of oil shale mining estimated to be 19 US $ per tonne.
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 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!