direct costs
Production-linked spending
Direct costs are expenses that can be traced specifically to a particular product, project, or activity: The direct costs of manufacturing include raw materials and labor.
In business accounting, they contrast with indirect costs or overhead, which support operations generally but can't be attributed to any single output.
We need to separate direct costs from administrative expenses.
Industrial product creation
- laborStrenuous effort; also childbirth
- materialsRaw stuff for creation
- raw materialsUnprocessed production inputs
- componentsConstituent parts
parts · assembly · machinery · equipment · production line · factory · fabrication · processing
Direct expenses for inventory sold
- cost accountingRecording and analyzing operational expenses
- ledgerFinancial record book
- invoiceItemized billing statement
- allocationDistribution of shares
expenditure · bookkeeping · gross margin · profit margin · financial statements · budget variance · cost center · expense tracking
Payment for work
- salariesFixed regular payments for work
- workforceAll available workers
- hourly ratePay calculated by time
- overtimeWork beyond scheduled hours
payroll · employee compensation · benefits · piece work · contract labor · labor hours · billable hours
Resources for a task
- inventoryCatalog of held assets
- purchasingAcquiring through payment
- vendorsThose who sell goods
- suppliersThose who furnish goods
sourcing · freight · shipping · logistics · warehousing · supply chain · outsourcing · subcontracting
manufacturing
Industrial product creation
- laborStrenuous effort; also childbirth
- materialsRaw stuff for creation
- raw materialsUnprocessed production inputs
components · parts · assembly · machinery · equipment · production line · factory · fabrication · processing · work-in-progress
cost of goods sold
Direct expenses for inventory sold
- cost accountingRecording and analyzing operational expenses
- ledgerFinancial record book
- invoiceItemized billing statement
allocation · expenditure · bookkeeping · gross margin · profit margin · financial statements · budget variance · cost center · expense tracking · general ledger
wages
Payment for work
- salariesFixed regular payments for work
- workforceAll available workers
- hourly ratePay calculated by time
overtime · payroll · employee compensation · benefits · piece work · contract labor · labor hours · billable hours
supplies
Resources for a task
- inventoryCatalog of held assets
- purchasingAcquiring through payment
- vendorsThose who sell goods
suppliers · sourcing · freight · shipping · logistics · warehousing · supply chain · outsourcing · subcontracting · contractors
- business costsadministrative fees, cost of goods sold, raw materials, labor, materials
- cost analysiscost analysis, cost assessment, cost basis, cost savings, variable cost
- Research Costsfunding, grants, budget, expenses, cost analysis
- cost accountingcost analysis, cost center, cost centers, cost control, cost accounting
- business expensespayroll, office rent, salaries, wages, office supplies
- grantsfunding, research grants, government grants, awards, allocations
direct costsindirect costs
Expenses not directly attributable
overhead · overhead costs · fixed costs · administrative costs · infrastructure costs
direct, direction, costs, director, indirect, indirect costs, redirect, undirected, directional