Direct Expenses under CAS-10: traceability, measurement, assignment and disclosure rules shape cost determination and presentation.

Direct expenses under CAS-10 are identified and measured by traceability to a cost object in an economically feasible manner, including bought-out resources, internally generated resources and one-time payments. Material items such as royalty, technical assistance fees, job charges, hire charges and product design costs may form part of direct expenses, while finance costs, imputed costs, abnormal costs, penalties and damages are excluded. The standard also requires assignment to the relevant cost object, separate presentation when material, and disclosure of distribution basis, variances, related-party transactions, foreign exchange items, subsidies, credits and changes in accounting principles.

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