DIRECT COST Definition

Bookmark and Share

DIRECT COST is that portion of cost that is directly expended in providing a product or service for sale and is included in the calculation of COST OF GOODS SOLD, e.g. labor and inventory (it can be traced to a given cost object in an economically feasible manner). Opposite of indirect cost.

Learn new Accounting Terms

ON-THE-JOB TRAINING (OJT) is training that takes place at the work site, usually supervised by a manager or an experienced coworker.

ATM see AUTOMATED/AUTOMATIC TELLER MACHINE.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.