The direct cost of an item is the portion of that item's cost that can be wholly assigned to the production of that item. Direct cost typically refers to materials, labor and expenses associated with ...

Direct materials are the supplies you use to manufacture your inventory: wood for cabinets, steel for girders or wool for coats. Accountants distinguish direct materials from indirect materials, which ...

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Suzanne is a content marketer, writer, and fact-checker. She ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...