Direct Cost

Direct Cost means:
the cost of labor and materials that can be identified in the product produced. Direct costs for an apartment building, for example, would include the construction materials and labor; some indirect costs might be the architect's fees, interest during construction, insurance, and builder's overhead and profit allowance.

U.S. and other Developed Countries International Tax Meaning

Cost identified with a particular transaction, such as raw materials, components and goods, wages and other processing expenses.