Which of the following is an example of a direct cost?

Direct costs are those that can be directly attributed to a specific project or activity, making them essential for determining the true cost of a project. Medical costs, in the context of workplace incidents, are directly associated with injuries or illnesses that occur on the job site. These costs include expenses such as hospital bills, rehabilitation, and follow-up treatments required due to work-related injuries.

In contrast, legal fees, overhead expenses, and marketing costs are considered indirect costs. Legal fees can arise from various situations that may not be directly linked to a specific project, such as contract disputes or compliance issues, making them harder to attribute directly. Overhead expenses encompass the general operating costs of a business, like utilities and administrative salaries, which are also not tied to any specific project. Marketing costs are expenses related to promoting and advertising the business, again not tied directly to project execution. Overall, recognizing medical costs as direct costs highlights their importance in the context of project budgeting and health management in the workplace.