Question

How to differentiate between list of direct and indirect expenses?

Answer 1

to differentiate between these two firstly u must know what is directed and indirect expenses

Direct expenses --> these are those expenses which are directly involved in manufacturing work.

for example like if u bought raw materials then the cost of raw materials+ carriage charges + cost of manufacturing will be direct expenses

indirect expenses --> these are those which are involved after the manufacturing is overed till the selling of goods and the other expenses like electricity bill , advertisement and many more.

the best way to recognise wether the given one is direct or indirect expense u learn direct expenses as they are less and leaving those and assets and liabilities all are indirect expenses