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Is electricity charges are direct or indirect expenses

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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