Question

direct expenses are shown in__________?
A. Balance sheet
B. profit and loss account
C. Trading account​

Answer 1

profit and loss account

hope it helps you

Answer 2

Direct expenses are shown on the debit side of a trading account.

Option C

Explanation:

Direct expenses can differ for several types of companies, such as production companies, service companies, construction companies, etc. Direct expenses includes,

• Materials used to manufacture a product for sale
• Cost of the freight needed to transport goods to and from a manufacturing facility
• Labor incurred
• Payroll taxes based on the units of goods produced
• Production materials utilized in the manufacture of goods

Direct expenses are listed in cost of goods sold section of income statement.

Learn more about direct expenses

The list of direct expenses and indirect expenses in consignment

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List of direct expenses under trading account

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