Calculating direct costs in procurement is the process of calculating how much it costs an organization to acquire a particular item. Direct costs are variable across different items and organizations, meaning that what is considered a direct cost for one organization may not be for another. Generally, direct costs refer to the actual goods or services purchased, along with any additional costs such as shipping, storage, taxes and fees. These factors are all taken into account when determining the total cost of an item. By understanding and managing these costs efficiently, organizations can save money throughout their procurement processes.