Direct Cost

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Dictionary Says

Definition of 'Direct Cost'

A price that can be completely attributed to the production of specific goods or services. Direct costs refer to materials, labor and expenses related to the production of a product. Other costs, such as depreciation or administrative expenses, are more difficult to assign to a specific product, and therefore are considered indirect costs.
Investopedia Says

Investopedia explains 'Direct Cost'

For example, the cost of meat in a hamburger can be attributed directly to the cost of manufacturing that product, as could the cost of packaging materials and preservatives. These are considered variable costs that are inconsistent and change amounts often. An indirect cost, such as the hamburger manufacturer's legal fees and staffing, is anything that is not a direct cost.

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'Direct Cost'

  • CFA Level 1 Study Guide - Financial Statements - Cash Flow ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/cash-flow-direct.asp
    ... 6.21 Cash Flow Computations - Indirect Method; 6.22 Cash Flow Computations - Direct
    Method; ... Entries and Accounting Impact; 9.9 Total Interest Cost Components; 9.10 ...

  • Commuters' University: On-The-Road Learning

    http://www.investopedia.com/articles/professionaleducation/09/commuters-university.asp
    ... based on a 10-mile (one-way) drive every weekday, if gas is at $2.30 per gallon
    and at an 86-cent per mile driver's direct cost (maintenance, parking) the ...

  • Direct Access Trading Systems

    http://www.investopedia.com/articles/trading/03/020503.asp
    ... The higher cost of DATs comes from the probability that any online broker is ... Commissions
    for direct access trades, by contrast, are based on a scale which ...

  • How Will The Subprime Mess Impact You?

    http://www.investopedia.com/articles/pf/07/subprime-impact.asp
    ... Although the direct cost of the subprime crisis will likely be modest in the
    scope of the economy, the spillover effects are concerning. ...

  • The Cost Of Hiring A New Employee - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/The-Cost-Of-Hiring-A-New-Employee.aspx
    ... the entire process, but even an $8/hour employee can end up costing a company around
    $3,500 in turnover costs, both direct and indirect. The Cost of Training ...

  • Dollar-Cost Averaging With ETFs

    http://www.investopedia.com/articles/mutualfund/05/ETFdollarcost.asp
    ... In such a direct comparison, ETFs almost always win by a landslide. Even the Vanguard
    Group - known for their low-cost, no-load index funds - can't compete. ...

  • Is Your High-Profile Job Worth The Price?

    http://www.investopedia.com/articles/financialcareers/10/high-profile-job-worth-price.asp
    ... Opportunity cost: Apart from the direct cost of education, one also has to consider
    the forgone opportunity cost of not being a member of the workforce. ...

  • The Best Designation For Your Financial Education: CFA, MBA Or ...

    http://www.investopedia.com/articles/professionaleducation/08/cfa-or-mba.asp
    ... The great disadvantage is cost - both the direct cost of the program and the loss
    of income that results from a two-year hiatus for those considering going ...

  • Fattening Up A Portfolio While Slimming Down

    http://stocks.investopedia.com/stock-analysis/2011/Fattening-Up-A-Portfolio-While-Slimming-Down-WTW-NTRI-NVO-VVUS0601.aspx
    ... The medical care costs of obesity in the United States are staggering. The direct
    cost for treating obesity related problems totals around $168 billion. ...

  • Can Business Evolve In A Green World?

    http://www.investopedia.com/articles/07/green-effect-business.asp
    ... an allocation of carbon and charged for any excess emissions), each extra ton of
    carbon emitted by a coal-fired plant would be a direct cost - and considering ...

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