CDCP · Question #6
Which one of the following is an example of Direct Cost?
The correct answer is A. Legal fees. Legal fees are an example of direct cost because they can be directly attributed to a specific project, product, or service. Legal fees are incurred for the purpose of obtaining legal advice, drafting contracts, resolving disputes, or complying with regulations related to the…
Question
Which one of the following is an example of Direct Cost?
Options
- ALegal fees
- BDamaged brand perception
- CNegative public relations
- DReduced customer satisfaction
How the community answered
(33 responses)- A94% (31)
- C3% (1)
- D3% (1)
Explanation
Legal fees are an example of direct cost because they can be directly attributed to a specific project, product, or service. Legal fees are incurred for the purpose of obtaining legal advice, drafting contracts, resolving disputes, or complying with regulations related to the core business activity. Legal fees are not general overhead expenses that are shared by multiple cost objects.
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