What is the difference between Direct expenses and Indirect
expenses?
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Answer / sandeep kumar
Direct expenses those expenses which are incurred on
production/Mfg.i.e. Freight Inward,wages,power &
fuel,cartage and others production expenses
Indirect expenses those expenses which are incrred on
sales/office.i.e.office salary,office electricity
bill,freight outward & insurance,advertisment and others
office expenses
| Is This Answer Correct ? | 14 Yes | 0 No |
Answer / bc070400217
Direct Expenses:
expenses connected with purchases of goods are known as
"direct expenses".for example: fright, insurance of goods in
transit, carriage, wages, customs duty, octori duty.
Indirect Expenses:
all the expenses other than direct expenses are assumed as
indirect expenses.such expenses have no relationship with
purchase of goods. for example: rent of building, salaries
to employees, legal charges, insurance of building,
depreciation, printing charges etc.
| Is This Answer Correct ? | 19 Yes | 8 No |
Answer / ramanuja
Direct Expenses: Expenses incurred during the production of
goods /services Example: wages, raw material transport
exp and other related expenses during the period
In direct expenses: that are expenses
after the production of goods and services.
For ex.advertising, and office expenses, audit fee,bank
charges etc.,
| Is This Answer Correct ? | 10 Yes | 0 No |
Answer / nirakar swain
Direct Expneses relate with Production, for example Raw
Material cost is Rs. 80/- freight cartidge Rs. 20/- and
Labour expnese Rs. 30/- the total production expenses will
be Rs. 130/- and the freight and labour expenses will be
considered as Direct Expenses. The Formula for GP (Gross
Profit is Opening stock + Purchase -Sale+Closing Stock-
Direct Expnese = GP, then for NP GP+Indirect Income -
indirect Expneses = NP, then it will be distributed between
partners to affect their Capital Value.
INDIRECT EXPNESES : After finished product is ready, the
cost of ADVERTISING and Business Promotion expenses for
that product will be add up in Indirect Expnese. other
examples fo indirect expenses are Printing and Stationary
Exp, Telephone Exp. Office Expneses etc.
| Is This Answer Correct ? | 11 Yes | 3 No |
the expenses which are related to the factory is known as
direct expense
e.g. wages to workers, factory rent, machine servicing
charges
the expenses which are related to the office is known as
indirect expense
e.g. salary to staff, rent, electricity etc
| Is This Answer Correct ? | 13 Yes | 5 No |
Answer / umesh sahu
DIRECT EXPENSES ARE LEVIED DURING THE PRODUCTION OF GOODS ,
example: POWER & FUEL, WAGES, OIL, ETC.,
INDIRECT EXPENSES ARE LEVIED AFTER THE PRODUCTION OF GOODS.
example: DEPRECIATION, INTEREST ON CAPITAL,PROVISION FOR
DEPRECIATION, ETC.,
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / narayan das
Which expencess are releted to factory expencess are called
directed expencess for the example :- wages, carrige in
word electricity , taxes,etc
But those expencess are releted to for the adminstrative of
business organisation are called indirect expencess
for example paid salary ,discount allowed advertisement etc.
| Is This Answer Correct ? | 9 Yes | 3 No |
Answer / surya bhan
Direct Expenses are those expenses which is arise on
production of goods.
For Example
Wages,Freight on manufacturing goods etc.
Indirect Expenses are those expenses which is arise on
selling of goods.
For Example
Salling & distriution expenses,commission,salary
etc...........
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / sanjay
Direct Expenses
Expenses which are incurred for the specific thing and are
directly charged by them are called direct expenses.
Eg: Raw Material for maufacture of product.
Indirect Expenses
Expenses or cost which are not being attributed directly to
a particular thing are called indirect cost.
Eg: Selling expenses
| Is This Answer Correct ? | 28 Yes | 23 No |
Answer / mohd imarn quraishi
such expenses where physical power is used more than mental
power,will be direct expenses.like wages/labour(based on
physical power)and salary (based on mental power).
| Is This Answer Correct ? | 16 Yes | 14 No |
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