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Question
Define Direct Cost.
Definition
Solution
Material, labour and other expenses which are directly or easily traceable to a product, service or job are known as direct costs. In the production of an article, materials are purchased, wages are paid to workers and certain other expenses are incurred directly. All these take an active and direct part in the manufacture of a product and are, therefore, called direct costs.
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Classification of Costs - On the Basis of Nature
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