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What are costs that can be identified specifically with a cost objective, but are not direct labor or direct material costs?

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5 votes

Answer:

Other direct cost (ODC)

Step-by-step explanation:

Other direct cost (ODCs) are costs that can be identified specifically with a final cost objective but are not treated as either a direct material or direct labor cost. Costs are identified as other direct cost so that it would be given proper treatment. Also, identifying costs as ODC helps in infective cost allocation.

Examples of ODCs include travel cost, preservations, equipment testing, consultancy and computer services, etc.

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