direct cost

Definition

A cost directly attributable to the manufacturing of a product. opposite of indirect cost.

Use direct cost in a sentence

The direct cost of buying lunch for the employees was well worth the extra time that they put in on the project.

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The direct cost was able to be tracked so we were able to get a full picture of the inputs and output of the project.

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The direct cost to the consumer was low enough that they felt comfortable making large orders, and remained loyal customers for years to come.

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factory gate price direct profit