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what is the differance b/w direct & indirect exp
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Answer / vaibhav saxena
Direct Expenses are those costs directly related to the
principal activity of the business. Examples include the
raw materials used to manufacture a product and the labor
costs associated with the work performed to produce the
product.
Indirect Expenses are those not directly related to the
principal activity of the business. Examples include Sales
activities, Research and Development activities, and
Administrative activities.
Simple example: An auto repair business.
| Is This Answer Correct ? | 19 Yes | 0 No |
Direct Expenses are those which effects the Production
directly.. For Example wages, carriage inwards, Expenditure
For Raw Material etc.... Indirect expenses are those which
does not effect the production Process Directly. For
Example, Administration Expenses, Selling and Distribution
Expenses.... These are the Expenses which Effects the
Production Process Indirectly....
| Is This Answer Correct ? | 7 Yes | 0 No |
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