Question

all direct expenses are charged to profit and loss account​

Answer 1

PROFIT AND LOSS....

Direct expenses are directly associated with the production/trading activity and to be charges to the trading account to know the grossprofit. Indirect expenses which are not directly associated but are related to business are to be charged to profit &loss account to know the net profit....

SELECT TO BRAINLIST ANSWER

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Answer 2

Explanation:

A direct expense is any cost directly related to the production and sale of your product, such as raw materials, shipping costs and labour for assembling the widgets. For this example your direct expenses are £4,000. This gives you a gross profit figure of £6,000 or 60% gross profit.