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Gorika Mehta
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    Direct and Indirect expenses- Direct expenses include all those expenses which have a direct connection with the manufacture of the goods (i.e., conversion of raw materials into finished products). Such expenses are direct expenses and placed on the debit side of the trading account. These expensesRead more

    Direct and Indirect expenses-

    Direct expenses include all those expenses which have a direct connection with the manufacture of the goods (i.e., conversion of raw materials into finished products). Such expenses are direct expenses and placed on the debit side of the trading account. These expenses are also called as manufacturing expenses. The list of direct expenses is shown below-

    Indirect expenses include all those expenses that are incurred to run business activities. These expenses have no direct connection with the manufacturing of goods. Such expenses are indirect expenses and placed on the debit side of the profit & loss account. These expenses are also known as office expenses. The list of indirect expenses is shown below-

    List of Direct & Indirect Expenses-

    S.no Direct Expenses Indirect Expenses
    1. Wages Office rent, rates and taxes
    2. Freight and Carriage  Salaries
    3. Manufacturing Expenses Legal Charges
    4. Factory Lighting Audit Fees
    5. Factory Rent Advertisement Expenses
    6. Factory Insurance Commission Paid
    7. Gas, Water and Fuel Discount Allowed
    8. Cargo Expenses Depreciation
    9. Import Duty Bank Charges
    10. Shipping Expenses Printing and Stationery
    11. Dock Dues Travelling Expenses
    12. Octroi Salesmen Salaries
    13. Depreciation on machinery Warehouse Insurance
    14. Motive power Delivery Van Expenses
    15. Clearing charges Packing Charges
    16. Custom Charges Carriage Outwards
    17. Coal, Oil and Grease Premises Rent
    18. Overhaul of Machinery Brokerage Charges
    19. Repairs on Machinery Postage and Cartage
    20. Upkeep and Maintenance Selling Expenses

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