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Is electricity charges are direct or indirect expenses
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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 |
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 |
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 |
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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