Business Studies, asked by navinkr802215, 11 months ago

indirect expenses and direct expenses​

Answers

Answered by arjundinesh020764
0

Answer:

indirect expenses means like doctor teacher etc

they are giving their service

direct expenses means like shop keeper etc

they selling buying and selling

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Answered by purplemermaid12
2

Answer:

Explanation:

Direct Expenses

“Direct” as the word suggests are those expenses which are completely related and assigned to the core business operations of a company. They are mainly related to purchases and production of goods/services. Direct expenses are a part of the prime cost or the cost of goods/services sold by a company.

Direct expenses are directly related to the production of the product sold or service rendered, they may differ for different types of companies, such as manufacturing companies, construction companies, service companies, etc.

Examples of Direct Expenses

Wages

Factory rent

Cost of raw material

Premises renting

Fuel

Indirect Expenses

Unlike direct, indirect expenses are not directly related and assigned to the core business operations of a firm. Indirect expenses are necessary to keep the business up and running, but they can’t be directly related to the cost of the core revenue-generating products or services.

Just like direct expenses, indirect expenses can also be different for different types of organisations. These are usually shared costs among different departments/segments within the firm.

Examples of Indirect Expenses

Salaries

Telephone bills

Printing & stationery

Legal & Accounting charges

Hope this helps !!!!

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