Question

Is workshop rent a direct or indirect expense?
Production takes place in the workshop

Answer 1

Answer:

Direct and indirect costs are accounting concepts that help you separate expenditures that fluctuate, relative to how much business you transact, and costs that stay mostly the same, whether you sell one item or one thousand. Direct costs are considered direct because the expenses incurred go directly into the products or services you sell. Indirect costs are indirect because they describe items necessary for running your business but not necessarily for producing your products