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Is electricity charges are direct or indirect expenses
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Answer Posted / datta raju
As per the Generally accepted accounting principle the electricity expenses are "Indirect in Nature" why because - Direct expenses are the expenses which is incurred directly related to the business example: Wages to labour, but here electricity is not the main criteria for the business to run.
There are lot of industries and business which are running not to use much of the electricity. So, to the best of my knowledge it is Indirect Expense.
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