Direct and Indirect Expenses:
Learning Objectives:
Direct Expenses: Expenses connected with purchases of goods are known as direct expenses. For example, freight, insurance, of goods in transit, carriage, wages, custom duty, import duty, octroi duty etc. Without incurring these expenses, it is not possible to bring the goods from the purchase point to the godown of the business. such expenses are collectively known as direct expenses. Indirect Expenses: All expenses other than direct expenses are assumed as indirect expenses. Such expenses have no relationship with purchase of goods. Examples of direct expenses include rent of building, salaries to employees, legal charges, insurance of building, depreciation, printing charges etc. So Expenses Direct Expenses Indirect Expenses
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