What is the difference between Direct expenses and Indirect
expenses?
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Answer / satyendra gangwar
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.
| Is This Answer Correct ? | 618 Yes | 89 No |
Answer / vinotha.v
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 ? | 285 Yes | 52 No |
Answer / vinay
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.
| Is This Answer Correct ? | 231 Yes | 32 No |
Answer / amit bang
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.
| Is This Answer Correct ? | 117 Yes | 33 No |
Answer / pawan rohira
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 ? | 78 Yes | 18 No |
Answer / gurcharan sachdeva
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.
| Is This Answer Correct ? | 188 Yes | 129 No |
Answer / ali ahmad
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.
| Is This Answer Correct ? | 78 Yes | 19 No |
Answer / pulkit
direct expences are expences which can directly be
allocated to a cost unit or cost center.THey are directly
related to production
| Is This Answer Correct ? | 78 Yes | 27 No |
Answer / rohan
Direct Expenses
Expenses which are incurred for the specific product or
services and are directly charged by them are called direct
expenses.
Indirect Expenses
Expenses or cost which are not being attributed directly to
a particular product or services are called indirect cost.
| Is This Answer Correct ? | 55 Yes | 19 No |
Answer / raj acharya
Direct Expenses are those expenses incurred during the production like Electricity charges, wages, packing expenses and other expenses related to production.
Indirect Expenses are those expenses incurred after the production like office expenses, salary, service charges on transportation, and other expenses related after the production.
| Is This Answer Correct ? | 28 Yes | 4 No |
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