Exin CDCP Exam - Topic 9 Question 46 Discussion

Actual exam question for Exin's CDCP exam

Question #: 46
Topic #: 9

[All CDCP Questions]

Which one of the following is an example of Direct Cost?

ALegal fees

BDamaged brand perception

CNegative public relations

DReduced customer satisfaction

Show Suggested Answer

Suggested Answer: A

Legal fees are an example of direct cost because they can be directly attributed to a specific project, product, or service. Legal fees are incurred for the purpose of obtaining legal advice, drafting contracts, resolving disputes, or complying with regulations related to the core business activity. Legal fees are not general overhead expenses that are shared by multiple cost objects.

by Novella at Jan 05, 2026, 05:16 AM

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Dexter

6 days ago

C) Negative public relations is definitely the way to go here. That's a clear direct cost.

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Bobbye

11 days ago

I think B) Damaged brand perception is the right answer. That's a direct cost of a project gone wrong.

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Trevor

16 days ago

A) Legal fees is the correct answer. Direct costs are expenses that can be directly attributed to a specific project or activity.

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Karl

21 days ago

I feel like damaged brand perception is more of a long-term consequence rather than a direct cost, but I can't recall the exact definitions we went over.

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Paris

26 days ago

I'm a bit confused because I thought negative public relations could also be a direct cost, but it seems more like an indirect effect.

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Reiko

1 month ago

I remember we practiced a question about costs in class, and I think legal fees might be a direct cost because they can be linked to specific cases.

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Dewitt

1 month ago

I think direct costs are expenses that can be directly attributed to a specific project or product, but I'm not entirely sure which option fits that definition.

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Ceola

1 month ago

I got this! The answer has to be A. Legal fees are a direct cost associated with running the business.

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Eladia

2 months ago

Okay, let me re-read the question and think this through step-by-step. I know direct costs are expenses directly tied to producing a product or service.

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