Question

The list of direct expenses and indirect expenses in consignment

Answer 1

Direct expenses are those expenses which goes into the value of an asset.

The list of direct expenses in a consignment include the following:

1. Price of purchase (machinery)

2. Transportation charges from purchasing place to factory

3. Unloading charges

4. Installation charges

Indirect expenses are the kind of expenses that are incurred to operate a business as a whole.

The list of indirect expenses in a consignment include the following:

1. Expenses incurred by the Consignor

2. Expenses incurred by the Consignee

3. Insurance charges

4. Depreciation

5. Indirect tax