pls advise me about indirect expense, can you help me , in this matter. jahangir
From Pakistan, Karachi
From Pakistan, Karachi
Hi Jehangir,
Indirect expenses are those expenses which are not direct expense. (i.g. if you are dealing in sale of electric goods (tv, fridge etc) and if you are purchasing the same from any traders then it becomes direct expense , but if you are paying for office electricity, salary , telephone etc that becomes your indirect expense. ) (another example if you are in manufacturing of cloth then raw material purchase for making cloth will be direct exp. where as office and administrative exp will be indirect.
Amjadkhan Shaikh
From India, Bhopal
Indirect expenses are those expenses which are not direct expense. (i.g. if you are dealing in sale of electric goods (tv, fridge etc) and if you are purchasing the same from any traders then it becomes direct expense , but if you are paying for office electricity, salary , telephone etc that becomes your indirect expense. ) (another example if you are in manufacturing of cloth then raw material purchase for making cloth will be direct exp. where as office and administrative exp will be indirect.
Amjadkhan Shaikh
From India, Bhopal
To narrate in brief - the expenses are broadly classified as Direct & Indirect Expenses in P&L or Income & Expenditure A/c. Those expenses that relate to the manufacturing process are said to be Direct, and others are Indirect. For e.g. Opening Stock, Purchases, Wages, Purchase returns etc - since it is direct - the expenses are considered as direct expense. The Indirect Expenses are Salaries, Printing & Stationery, conveyance, Office Rent, Discount allowed, Electricity / Water charges etc. The list is more, and considering the nature of expenses involved in a transaction, it should be placed appropriately under that head.
From India, Bangalore
From India, Bangalore
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