Direct expenses are those expenses that are levied during 
the production of goods. For ex. wages.

Indirect expenses are are those expenses that are levied 
after the production of goods and services. For ex. 
advertising, salary and office expenses.

direct expenses are those expenses which can be assigned 
directly to the cost units. on the other hand, indirect 
expenses are those expenses which can not be directly 
assigned tho the direct cost units. For ex. Rs. 100 has 
been incurred for the carriage of goods in lum sum where it 
canot be assigned to the cost units is indirect expense.

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.,

Direct expense is an expense which is incurred with 
manufacture of a product. For Eg: Purchase of raw 
materials, factory labour, factory wages, electricity 
expense incurred in factory ie., on running machinery,water 
etc.

Indirect expense also called as overhead are additional 
expenses which are incurred on bringing a product to final 
customer.

Eg: Sales and Distribution, Office Salary, expenses on 
support services, office electricity, office water, 
printing and stationery, outsourcing expenses, advertising 
expenses etc.

Direct Expenses are those expenses which affect the gross 
profit and are taken in the Manufacturing or Trading 
Account , whereas the Indirect Exopenses are those expenses 
which does not affect gross Profit and this expenses are 
not taken to Trading Account and are taen in Profit and 
Loss Account.

direct expences are expences which can directly be 
allocated to a cost unit or cost center.THey are directly 
related to production