Business Pitch Dictionary by pitch.dog
Margins, break-even & unit economics · Core

Direct cost

Also called: attributable cost

ELI5

A cost traceable to a specific product, customer, project or cost object.

Used in conversation

“The number is useful only if everyone calculates direct cost the same way.”

Pitch context

You will see “Direct cost” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 4

Direct term-level sources and supporting source families.