GENERAL KNOWLEDGE

Detailed explanation-1: -A direct cost can be traced to the cost object, which can be a service, product, or department. Direct costs examples include direct labor and direct materials. Although direct costs are typically variable costs, they can also be fixed costs.

Detailed explanation-2: -Direct costs definition Direct costs are the expenses a business incurs that can be directly tied to the production of a good or the provision of a service. Direct costs are the expenses a business incurs to make a product or deliver a service, or when it buys a wholesale product for resale.

Detailed explanation-3: -Traceable costs are those which can easily be identified by a producing unit. These are directly related to a unit of operation like a product, a process or department of firm. These are also known as direct costs or assignable costs.

Detailed explanation-4: -Direct Costs A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product. The cost can easily be traced to a product, department, or project.

Detailed explanation-5: -Direct costs (also known as costs of goods sold-COGS) are the costs that can be completely attributed to the production of a specific product or service. These costs include the direct expenses for materials used to create the product, and potentially any labor costs that are exclusively used to create the product.