direct cost
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Definition
Expense that may be traced directly to (or recognized with) a specific price center or value object reminiscent of a department, course of, or product. Direct prices (similar to for labor, materials, gasoline or energy) fluctuate with the rate of output but are uniform for each unit of production, and are normally underneath the management and accountability of the division manager. As a normal rule, most prices are fastened within the brief run and variable in the lengthy run. Additionally called direct expense, on value, working cost, prime cost, variable cost, or variable expense, they are grouped under variable costs.