Direct costs are those costs that can be easily and accurately traced to a cost object.

Question

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Direct costs are costs that can be specifically traced to a particular product, service or department. Examples of direct costs include direct materials, direct labor, and direct expenses such as commissions paid to sales representatives. These costs are incurred for a specific purpose and can be easily identified with the cost object they are associated with.

Direct Costs Are Those Costs That Can Be Easily and Accurately