Meaning of the word "direct cost" in English

What does "direct cost" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

direct cost

US /daɪˈrekt kɔst/
UK /daɪˈrekt kɔst/
"direct cost" picture

Noun

1.

a cost that can be directly attributed to the production of specific goods or services

Example:
Labor and raw materials are examples of direct costs in manufacturing.
Calculating direct costs is crucial for accurate product pricing.
Synonym:
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