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Is electricity charges are direct or indirect expenses
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Answer Posted / saroj_surendran@rediffmail.com
Direct expenses are the expenses taken into consideration to calculate gross profit ,Direct expenses are the expenses which is incurred directly related to manufacturing or trading,
eg raw material , company will know how much raw material is used for producing one unit
while indirect expenses are indirectly related expenses e
eg rent , electricity
they cannot be directly related to product , they need to be apportioned
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