Gorika Mehta

Can you share a list of direct and indirect expenses?

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  1. This answer was edited.

    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.noDirect ExpensesIndirect Expenses
    1.WagesOffice rent, rates and taxes
    2.Freight and Carriage Salaries
    3.Manufacturing ExpensesLegal Charges
    4.Factory LightingAudit Fees
    5.Factory RentAdvertisement Expenses
    6.Factory InsuranceCommission Paid
    7.Gas, Water and FuelDiscount Allowed
    8.Cargo ExpensesDepreciation
    9.Import DutyBank Charges
    10.Shipping ExpensesPrinting and Stationery
    11.Dock DuesTravelling Expenses
    12.OctroiSalesmen Salaries
    13.Depreciation on machineryWarehouse Insurance
    14.Motive powerDelivery Van Expenses
    15.Clearing chargesPacking Charges
    16.Custom ChargesCarriage Outwards
    17.Coal, Oil and GreasePremises Rent
    18.Overhaul of MachineryBrokerage Charges
    19.Repairs on MachineryPostage and Cartage
    20.Upkeep and MaintenanceSelling Expenses

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