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pl tell me the difference between indirect expenses & direct expenses ??
From India , Mumbai
Hi Ruchi
Direct expenses means expenses related to the production of the product ie related to operations in the factory / trade. eg Raw materials, wages, sales, purchases etc.
Indirect expenses means expenses related to administration. eg salary, rent, electricity, postage etc
Hope ur doubt may be cleared
Sudha S

From India , Madras
Hello Ruchi

Indirect Expenses means not directly related to increase or decrease of the production of the product / trade. i,e these expenses are called fixed cost either production occured or not, eg. salary, rent, selling & admin exp., postage, depr, telephone and electricity( semi variable exp) etc.

Direct Expenses means expenses dirctaly related to production of the product or trade

if production not occured there will be no expenses directally because there is no need to purchase raw material , carriage in ward, wages, telephone and electricity (semi variable exp.) and it is also called variable expenses.

semi variable expenses means some part of the exp. on production and remaining on administration. suppose electricity exp. there is fixed rental upto 200 unit (Rs 500/)if more @ Rs. 3/ per unit in this case we can say Rs 500/ is not directaly related to production of the product but Rs 3/ per unit is directaly related to product.

hope fully enough to understan the differences between ..............

From Saudi Arabia , Riyadh
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