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A Direct Cost Is a Cost That Can Be Easily

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A direct cost is a cost that can be easily traced to the particular cost object under consideration.


Definitions:

Reclamation Costs

Expenses associated with the process of restoring land after it has been used or damaged, such as in mining activities.

Natural Resource

Assets that occur in the environment naturally, such as minerals, forests, and water bodies, which can be used for economic benefit.

Depletion

The allocation of the cost of natural resources over their useful life.

Statutory Depletion

A tax deduction allowing an owner to account for the reduction of a product's reserves.

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