Direct expenses are those expenses which we can attribute
to a particular product like raw materials expenses, direct
whereas indirect expenses are the expenses which cannot be
directly attributed to a particular product like rental
expenses( company producing many product), security
expenses, management expenses. these expenses are
apportioned to the product on many basis like on per unit
or sales basis etc
Direct Expense are the expenses which are directly related
to the business activity.Example:-
Octroi charges , labour charges, freight charges, transport
Indirect Expenses are the expenses which are no directly
related to the business activity.Example:salary, rent,
stationery expenses, discount, allowance, etc..
Indirect income are the income which are not due to any
sale but due to any other reasons.
direct expenses are those type of expenses which directly
effect our company or organisation. this type of expenses
is necessary to pay within a time slot. Ex. wages for
factory, machine repair, freight inward. this type of
expenses must pay within on time otherwise loss for company
Indirect exps. directly not effect on company or
organisation. it mey be delay to pay indirect exps.
salary,rent,conveyance etc. is an example of indirect
Direct expenses are those which are paid by company or
organizations for buying materials or transport charges or
Indirect expenses are like salary,discount,wages,rent which
paid by company.
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