Is electricity charges are direct or indirect expenses

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Is electricity charges are direct or indirect expenses..

Answer / datta raju

As per the Generally accepted accounting principle the electricity expenses are "Indirect in Nature" why because - Direct expenses are the expenses which is incurred directly related to the business example: Wages to labour, but here electricity is not the main criteria for the business to run.
There are lot of industries and business which are running not to use much of the electricity. So, to the best of my knowledge it is Indirect Expense.

Is This Answer Correct ?    50 Yes 11 No

Is electricity charges are direct or indirect expenses..

Answer / ravi

direct exps are the exps which are related to factory exps
indirect exps are the exps which are related to office exps

if electricity charges spent for a factory - Direct exps

if electricity charges spent for a office - indirect exps

Is This Answer Correct ?    40 Yes 9 No

Is electricity charges are direct or indirect expenses..

Answer / saroj_surendran@rediffmail.com

Direct expenses are the expenses taken into consideration to calculate gross profit ,Direct expenses are the expenses which is incurred directly related to manufacturing or trading,
eg raw material , company will know how much raw material is used for producing one unit

while indirect expenses are indirectly related expenses e
eg rent , electricity


they cannot be directly related to product , they need to be apportioned

Is This Answer Correct ?    9 Yes 1 No

Is electricity charges are direct or indirect expenses..

Answer / raghuvstar@gmail.com

Indirect Expenses

Is This Answer Correct ?    9 Yes 3 No

Is electricity charges are direct or indirect expenses..

Answer / sai charan s

Direct expenses are the expenses related to manufacturing indirect expenses are the expenses which do not relate to manufacturing so electricity bill is an indirect expense

Is This Answer Correct ?    0 Yes 0 No

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