What do you mean by direct expenses and indirect expenses?
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Direct and Indirect Expenses. Expenses are amounts paids for goods or services purchased. They can either be directly or indirectly related to the core business operations . Type of an expense and timing at which it is incurred by the business frames the key points of different between direct and indirect expenses.
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Direct expenses are the expenses that are directly attributable to purchase and production of goods.
Indirect expenses are those expenses which arenot allocated directly for the direct output.
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