Direct Costs

Direct costs are expenses that can be directly attributed to a specific project or activity. In the context of Cost Benefit Analysis, these costs are easily identifiable and measurable, such as materials, labor, and equipment needed for the project. For instance, if a community builds a playground, the costs of lumber, labor for construction, and playground equipment are all direct costs. Understanding these costs helps in evaluating whether the benefits of the project, like increased community playtime, outweigh the expenses involved.