What do direct billing costs include?

Direct billing costs encompass the expenses directly related to invoicing clients and collecting funds for transactions. This includes the costs associated with generating and sending invoices, processing payments, and managing accounts receivable. These activities are essential for ensuring that a business can receive payments for the services or products it provides.

In the context of a business's operations, direct billing costs are crucial since they directly impact the revenue cycle and cash flow. Efficient invoicing and collection processes can lead to quicker payments and improved financial health for the organization. Therefore, recognizing these costs is important for accurate financial planning and analysis.

Other choices do not pertain to direct billing. Transaction fees relate to costs incurred for each transaction processed through payment systems, while card manufacturing is about the physical production of cards. Advertising and promotions focus on marketing expenses, which are different from billing and collection activities.