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Direct costs are best described as costs that can be specifically tied to a single cost objective or output. This characteristic is essential in financial management, especially within government and nonprofit organizations, where pinpointing the exact cost associated with a particular program or project is crucial for budgeting and accountability.

For instance, if a government agency undertakes a specific project, any expenses that can be directly attributed to that project—such as salaries for workers involved, materials purchased exclusively for the project, and other expenses incurred specifically for that initiative—are categorized as direct costs. This clear linkage enables more accurate cost control and financial reporting, allowing stakeholders to assess the effectiveness of spending and resource allocation.

In contrast, the other options do not accurately define direct costs. For example, costs that can be shared among multiple objectives would typically be classified as indirect costs. Similarly, administrative overhead expenses are often indirect costs because they cannot be directly attributed to any single project. Lastly, costs that cannot be directly measured do not fall under the category of direct costs, as the essence of direct costs is their traceability to specific outputs or projects.