Dictionary of Marketing Terms: direct costs
direct costs
expenses such as production materials and labor or sales force salaries that relate directly to the manufacture or sale of a product. Direct costs may be fixed or variable and may be charged against a product, a sales program, a customer account, or a marketing plan.
Dictionary of Real Estate Terms: direct costs
direct costs
costs that are readily identified in the construction of real estate, such as labor, materials, and contractor's overhead and profit. Contrast with indirect costs.
Example: Direct costs for an apartment building were $2 million; indirect costs, such as architect's fees, interest during construction, and builder's overhead and profit allowance, totaled $500,000.
