sir,
i am working in part time job in welding institute in that
some expenses will come cylinder and scrap material and rods
w (welding) these all are direct expense or indirect
expenses , please explain
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Answer / praveen
See...
I want to clear u tht
Direct expenses are those which are directly related to the
job.Ex - Direct material,Direct labour,Direct wages..
Indirect expenses are those which are indirectly related to
the job.For ex - Salary of staff,other expenses etc..
1.Rods are direct expense for you as you are working in
Welding institute....
2.Scrap is a production loss...
3.Cylinder is indirect expenses,if not related to welding
process......
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Answer / jijesh
as your firm is a welding shop all the expences u entered
can be treated as direct expence
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