Answer Posted / shanthi gnanadurai
DIRECT EXPENSES ARE THOSE EXPENSES WHICH ARE RELATED TO THE
MAIN BUSINESS ACTIVITY OF THE BUSINESS AND IT DIFFERS WITH
THE NATURE OF THE BUSINESS FOR EX. IN PRODUCTION ORIENTED
BUSINESS RAW MATERIALS,WAGES,FREIGHT ETC. IN MANAGEMENT
ORIENTED BUSINESS ALL ADMINISTATIVE EXP. ARE DIRECT
EXPENSES.
INDIRECT EXPENSES ARE THOSE EXPENSES WHICH ARE INCURRED FOR
UNPRODUCTIVE REASON BUT HELPS SMOOTH FLOW OF BUSINESS FOR
EX.DEPRECIATION OF MACHINES,SINKING FUND,INSURANCE ETC.
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