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-