direct cost
Definition
Expense that can be traced directly to (or identified with) a specific cost center or cost object such as a department, process, or product. Direct costs (such as for labor, material, fuel or power) vary with the rate of output but are uniform for each unit of production, and are usually under the control and responsibility of the department manager. As a general rule, most costs are fixed in the short run and variable in the long run. Also called direct expense, on cost, operating cost, prime cost, variable cost, or variable expense, they are grouped under variable costs.
direct cost is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
direct cost appears in the definitions of the following terms:
full cost pricing,
job costing,
variable expense,
throughput costing,
direct cost approach,
on cost,
direct costing,
step variable cost,
actual cost of work performed (ACWP),
burden
and
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