Direct Costs
/ˈdəˌrɛkt kôsts/
Definitions
- (n.) Expenses directly attributable to a specific project or contract, excluding indirect or overhead costs.
The contractor submitted a detailed report of direct costs incurred for the building project.
- (n.) Costs that are necessary and integral to the production of goods or services in a legal or accounting context.
Direct costs must be carefully documented to support claims in contract disputes.
Forms
- direct costs
- direct cost
Related terms
See also
Commentary
Direct costs are distinct from indirect costs and should be separately identified to ensure proper legal and financial treatment, especially in government contracts and litigation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.