direct cost include — direct material— direct labur— and direct expense sir please explain it to me.. what is the direct expense ? i m my view these all are direct expense ..direct material+direct labur… then what is direct expense? explain ith example plzz ..
Direct expenses are other expenses that can be directly attributable (measured) to each unit. Royalties would be an example. If the company had to pay a royalty to the inventor of $1 a unit, then there would be a direct expense of $1.