Direct cost is the cost or an expense which is directly tied to the production of the particular goods and services. It is usually variable costs, which means that the cost will fluctuate with the levels of the production like inventory.
Examples of direct costs are manufacturing supplies, direct labor, commissions, direct materials and piece rate wages.
So, the example of the direct costs for the service offered through accounting firm is the labor of the staff accountant who make the returns.
The three items that are included in the substantiation requirements are:
Date Placed in Service
The total mileage; and
Vehicle Type.
<h3>What is IRS guidelines?</h3>
Internal Revenue Service Guidelines are guidelines that individuals and corporates must follow in order to be compliant with the requirements of the IRS.
Thus, it is correct to indicate that according to the IRS Guidelines, the three items that are included in the substantiation requirements are:
