Which type of cost is classified as a direct expense?

A direct expense is a cost that can be directly linked to a specific grant project, making it clear and straightforward in terms of accountability and reporting. This type of expense includes costs such as personnel salaries, materials, and supplies that are used exclusively within the scope of the project. The ability to attribute these costs directly to the grant helps in accurately tracking project expenditures and ensuring compliance with funding requirements.

Other options describe different financial concepts. Shared costs among multiple projects fall under indirect costs as they cannot be directly traced to a single project. Fixed costs that do not vary might also be seen as indirect, as they remain constant regardless of the specific project. Indirect costs, incurred over time and not easily attributed to any particular project, also do not qualify as direct expenses. Thus, understanding the nature of direct expenses is crucial for effective grants management and financial accountability in grant-funded projects.