Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of costs.

Direct cost

Explanation:

Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of direct costs.

Direct cost is a price that can be directly tied to the production of goods or services, example of direct cost are commissions, price rate wage, materials, manufacturing supplies, direct labor etc

Wage and salaries are also an example of direct cost.

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