what are direct expenses give two example of direct expenses
Answers
Answer:
Direct expense is an expense incurred that varies directly ... A cost object is any item for which you are measuring ... Here are several examples of direct expenses:.
Examples of Direct Expenses
direct labor – i.e. the cost of paying employees to produce your products; direct materials, including raw materials; commissions; and. manufacturing supplies
Explanation:
Direct expense is an expense incurred that varies directly with changes in the volume of a cost object. A cost object is any item for which you are measuring expenses, such as products, product lines, services, sales regions, employees, and customers. Here are several examples of direct expenses:
The materials used to construct a product for sale
The cost of the freight needed to transport goods to and from a manufacturing facility
The labor incurred to produce hours billable to a client
Labor and payroll taxes paid based on the number of units produced
Production materials consumed during the manufacture of goods
The commission and payroll taxes related to the sale of goods or services...
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