Direct cost is any expenditure that a business or organization will undertake that is completely attributed to a cost object, be it goods or services. This could include resources and materials, processes, individuals (such as employee salaries), or direct expenses (such as royalties to a patent holder). A direct cost requires a specific cost object in the organization that it can be attributed to, such as a particular project or product. They do not necessarily have to be fixed amounts, though. A direct cost can be attributed to an object with a fluctuating price (such as oil) in which case, it's known as a variable direct cost.
GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.
GEP NEXXE is a unified and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artificial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.