Answer Posted / sridharan

Diect Expenses Means:

Expenses which are related to Manufacturing the goods For
Eg:- Wages, FactoryRent, FactoryLighting & Power, Labour,
Fuel(FatoryPortion)Etc...



Indirect Expenses Means:

Expenses which are relating to sell the goods Produced Eg:-
Rent, Salary, TelephoneCharges Eletricitycharges Etc...



Note:- In Trialbalance if Salaries & Wages is given then it
should be taken into P&L A/C and not to Trading A/c.
Idea is That majority Prtion is Salary & small portion is
wages and Vice versa...

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