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How Many kind of expenses or Income will come under direct
expenses or Income ?
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Answer Posted / h.r. sreepada bhagi
Expenses & Income are classified as Direct & Indirect in
business other than manufacturing concerns also.
All those Incomes which are related to the main business of
the company are direct incomes and expenses directly related
and identifiable with the direct income are direct expenses.
All those income and expenditure which result in Gross
Profit are Direct and all other Incomes (Interest, Dividend,
etc. in a Non-Financial, Non-Investment or Non-Banking
Company) or Expenses (Office Rent, Admn. or Finance staff,
salary, Telephone/Internet charges) are Indirect and affect
the Net Profit. A Trading Company, a Professional firm can
also have direct & indirect components in Income / Expenses.
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