Can you share a list of direct and indirect expenses?

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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 are 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 are 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 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



>Related Long Quiz for Practice Quiz 23 – Direct and Indirect Expenses


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