Direct Cost [emailsmarketingsolutions.blogspot.com]

Direct Cost [emailsmarketingsolutions.blogspot.com]

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By the term direct cost we mean that the coat which we can trace directly for producing specific services or goods. Direct cost is associated in producing specific project, activity, product or department. The cost included in direct cost is direct material and labor cost. These direct costs are used for delivering any service or making any product. We can also call direct cost as a hard-cost. A direct cost starts right from the cost which is incurred, by a business, in development and research, through campaigns of marketing and sales to the manufacturing of various forms of services and goods.

Types of Direct Cost

There are 3 types of direct cost which is incurred by a business entity, i.e.

direct-material cost, direct-labor cost and direct-expenses cost. All these direct costs are mentioned in detail here-under: Direct-material cost â€" It includes cost of all the materials which forms finished good's integral-part and these materials can be traced out readily in a finished good, as having a physical existence. Let us take a computer manufacturing company as example. Here the manufacturer includes computer's plastic-housing, monitor-screen's face, circuit-boards inside the machine, & so on. Minor raw material like solder, wires etc. although are important in manufacturing process but cannot be traced out in the finished product and therefore such type of items cost is called as indirect-material cost. Direct-labor cost â€" This type of direct cost includes the gross-wages which are paid by the business entity to all those employees who directly and physically work for producing the goods. For e.g. wages which is given to a welder working in the factory of bicycle, for fabricating bicycle's frames will be considered as direct-labor cost. Wages which is paid to all those employees who are engaged directly in manufacturing a product is said to be direct-labor cost. Whereas if wages are paid to guards or supervisors then this does not in the category of direct-labor costs, it is indirect-labor cost. This is so because they are not working directly for manufacturing a product. Direct-expenses cost â€" It is also said as manufacturing overhead. This cost consists of all those costs incurred in manufacturing a product except direct-labor and material cost. It refers to the expenses incurred in running a factory. For example, depreciation relating to the factory, rent, electricity, gas, repairs, utilities, taxes, insurance and maintenance. These are those expenses that one can identify it in a specific cost-center & therefore are charged directly to those cost centers. Few e.g. of direct expenses includes royalty, equipment's or plant's hire-charges, excise-duty etc.

The direct cost comprises of all those cost which are involved directly in manufacturing or making any service or product. With cost-of-goods-sold is associated direct cost. Direct cost is calculated in different manner in different businesses. Direct cost varies from business to business.

Recommend Direct Cost Issues

Question by tyson_su: How did Youtube/Myspace/Facebook get their traffic in their early stages ? I would like to start my own web portal and would like to know how one would get attention to the website. I would think that one could get good PR from getting Newspapers/Magazines/etc to write about your portal. Early on I assume that direct marketing efforts would just waste money i.e. Cost Per Acquisition Email, CPA Banners, CPA Coreg. Best answer for How did Youtube/Myspace/Facebook get their traffic in their early stages ?:

Answer by inukjuak90
YouTube was actually founded by three people -- and the 3rd person's name is Jawed Karim. If you are interested in a SUPER INSIGHTFUL history of how YouTube was created, take a look at his video where he gave a speech at the University of Illinois at Urbana-Champaign. In that video, he has some really interesting comments on what existed before YouTube. Later on in the video, he talks about what they did to get their traffic: http://youtube.com/watch?v=nssfmTo7SZg (Please skip the first 4 minutes of boring introduction, and be prepared to learn lots of amazing & interesting facts from this guy -- who talks like a nervous high-school kid for 45 minutes. His speech is rather dry and not great visually, but very funny. Also, keep your finger on the volume button because he talks low, but everything else is very loud.)

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