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How Many kind of expenses or Income will come under direct
expenses or Income ?
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THERE ARE TWO KIND OF EXPENSES
DIRECT EXPENSES
IN DIRECT EXPENSES
DIRECT EXPENSES MEANS ITS FULLY UTLIZED ONLY PRODUCTION
LIKE FUEL,OIL WAGES LIKE
INDIRECT EXPENSES MEAN VIS VASA OF DIRECT EXPENSES
ALL EXPENSES OTHER THAN PFODUCTION
LIKE ADMIN EXP, FINANCE EXP
| Is This Answer Correct ? | 27 Yes | 5 No |
Answer / monu aggarwal (monu.1526@redif
Aishwarya,you are right.
Direct expences:
1.Power
2.Wages
3.Freight
4.Fuel
5.Octroi
6.Carraige inward.
7.Import Expences
| Is This Answer Correct ? | 22 Yes | 1 No |
Answer / aishwarya
DIRECT EXPENSE:
during the production of goods the expenses which are required by the goods those expenses are direct expenses.
for example: manufacture of chocolates. it needs raw materials and it has to be packed, and its frieght charges, fuel, oil, wages...etc. will come under direct expenses.
"the expenses which affect the gross profit are direct expenses".
INDIRECT EXPENSES:
the expenses which affects the net profit are indirect expenses. (or) after the manufacture of goods the goods has to be sold during the sales the expense which are occurred are indirect expenses.
| Is This Answer Correct ? | 21 Yes | 4 No |
Answer / h.r. sreepada bhagi
Expenses & Income are classified as Direct & Indirect in
business other than manufacturing concerns also.
All those Incomes which are related to the main business of
the company are direct incomes and expenses directly related
and identifiable with the direct income are direct expenses.
All those income and expenditure which result in Gross
Profit are Direct and all other Incomes (Interest, Dividend,
etc. in a Non-Financial, Non-Investment or Non-Banking
Company) or Expenses (Office Rent, Admn. or Finance staff,
salary, Telephone/Internet charges) are Indirect and affect
the Net Profit. A Trading Company, a Professional firm can
also have direct & indirect components in Income / Expenses.
| Is This Answer Correct ? | 8 Yes | 0 No |
Answer / ali imran
All controllable expenses or variable/Marginal expenses are called direct expenses.These expenses increases with activity level so called variable. (i.e more units sold more income derived, More worker hired more wages are paid, Depreciation calculated on units is also direct expense)
All Uncontrollable expenses or fixed expenses are called indirect expenses. These expenses does not increase with activity level so called fixed.( i.e a fixed rate is provided as depreciation is must weather or not new asset is purchased, Subject is rate not amount)
Subject to a reasonable activity level 100% and a particular period of time (i.e 1 year).
| Is This Answer Correct ? | 8 Yes | 0 No |
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