Answer Posted / vaibhav saxena
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 activities.
Simple example: An auto repair business.
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