The given statement is false.
Direct cost are not tangible services and products that are being exchanged for money.
Explanation:
Direct costs are the cost incurred to produce a unit of product or a service. Direct costs may include the cost incurred on direct material, direct labor, commissions, price rate wages, manufacturing supplies, etc.
Direct cost is basically a cost which is attached to the price of the final good or service to be charged by the customer.
For example, if a company produces leather shoes, the cost of leather, the cost incurred on the labor who make the shoes, the cost of other supporting supplies, make up the Direct cost of the product.
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