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

A direct cost refers to an expense that can be directly attributed to a specific project or product. In this context, labor and materials are classic examples of direct costs because they are necessary for the production of goods or completion of specific projects. When you think about construction or manufacturing, the wages paid to the workers involved in creating a product and the raw materials used in the process directly tie to the output of that specific endeavor.

In contrast, the other options mentioned represent indirect costs or expenses that are not directly linked to a specific project. Zoning fees, inspection costs, and administrative fees do not directly contribute to the physical creation of products but are necessary for regulatory compliance, oversight, or general business operations. Thus, they are classified as indirect costs. Therefore, labor and materials are the direct costs clearly associated with production activities.