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How Many kind of expenses or Income will come under direct
expenses or Income ?
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Answer Posted / aishwarya
DIRECT EXPENSE:
during the production of goods the expenses which are required by the goods those expenses are direct expenses.
for example: manufacture of chocolates. it needs raw materials and it has to be packed, and its frieght charges, fuel, oil, wages...etc. will come under direct expenses.
"the expenses which affect the gross profit are direct expenses".
INDIRECT EXPENSES:
the expenses which affects the net profit are indirect expenses. (or) after the manufacture of goods the goods has to be sold during the sales the expense which are occurred are indirect expenses.
| Is This Answer Correct ? | 21 Yes | 4 No |
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