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What is the difference between Direct expenses and Indirect
expenses?

Answers were Sorted based on User's Feedback



What is the difference between Direct expenses and Indirect expenses?..

Answer / jiban mishra

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 ?    7 Yes 5 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / biru kolekar

Direct Expenses is those expenses is related of Manufacturing & Production.
Like as : Labor Cost,Wages, Transfer Cost etc.

Indirect Expenses is those Expenses is related after Manufacturing & Production.
Like as : Advertisement of Goods, Rent of Shop, Salary of Employee etc.

Is This Answer Correct ?    1 Yes 0 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / sunjiet

Direct expenses are those
expenses which are directly
attributable to the purchase of
goods or to brings the goods in
saleable condition.

Is This Answer Correct ?    1 Yes 0 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / jitendra raghuvanshi

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 penses those belongs to di

Is This Answer Correct ?    1 Yes 0 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / madhav mishra

Direct Expenses: Direct expenses are those expenses that are paid only for the business part of your home. For example, if you pay for painting or repairs only in the area used for business, this would be a direct expense.

Indirect Expenses: Indirect Expenses are those expenses that are paid for keeping up and running your entire home. Examples of indirect expenses generally include insurance, utilities, and general home repairs. Since these are expenses you would pay for the entire home, these are considered indirect expenses.

Note: If you paid one of these separately and specifically for the part of your home you are using for business, these could be considered "direct expenses". For example, if you paid separate utilities that were specifically for your home office, this could be considered a direct expense. If any part of that bill included utilities for the whole house, though, that would be an indirect expense.

Is This Answer Correct ?    1 Yes 0 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / kundan and manoj

Direct expenses are those expenses that are levied during
the production of goods. For ex. wages,carriage,purchase.

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 ?    1 Yes 1 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / pawandeep singh

Direct costs are those for activities or services that
benefit specific projects, e.g., salaries for project staff
and materials required for a particular project. Because
these activities are easily traced to projects, their costs
are usually charged to projects on an item-by-item basis.

Indirect costs are those for activities or services that
benefit more than one project. Their precise benefits to a
specific project are often difficult or impossible to trace.
For example, it may be difficult to determine precisely how
the activities of the director of an organization benefit a
specific project. Indirect costs do not vary substantially
within certain production volumes or other indicators of
activity, and so are considered to be fixed costs.

Is This Answer Correct ?    0 Yes 0 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / dipendra dhamala

Direct Expense are those expense which can be happened
direct in a short time. It means that it happened in
factory where a person does one day work and he gets amount
after doing that certain work. for eg. wages, carriage,
etc.
Indirect Expenses are those expense which is happended in
at the office like salary, stationary, photocopy, printing,
tea and coffee, etc.

Is This Answer Correct ?    0 Yes 0 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / saraj singh virk

DIRECT EXPENSES ARE THOSE IN WHICH DIRECTLY RELATED ON
BUSINESS.EXAMPLE:-CARRIAGE INWORD,CARRIAGE
OUTWORD,TAXES,OCTROI ETC.
INDIRECT EXPENSES ARE THOSE INCLUDING RELATED ON BUSINESS
EXAMPLE:-SALERY PAID, PATROL EXPENSE,TEA EXPENSE,STATINORY
EXPENSE ETC.

Is This Answer Correct ?    0 Yes 0 No

What is the difference between Direct expenses and Indirect expenses?..

Answer / kannan

Direct Expenses:
Expenses connected with purchases of goods are known as
direct expenses. For example, freight, insurance, of goods
in transit, carriage, wages, custom duty, import duty,
octroi duty etc. Without incurring these expenses, it is
not possible to bring the goods from the purchase point to
the godown of the business. such expenses are collectively
known as direct expenses.

Indirect Expenses:
All expenses other than direct expenses are assumed as
indirect expenses. Such expenses have no relationship with
purchase of goods. Examples of direct expenses include rent
of building, salaries to employees, legal charges,
insurance of building, depreciation, printing charges etc.

Is This Answer Correct ?    0 Yes 0 No

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