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What is the difference between direct expenses and indirect expenses
What is the difference in direct income and indirect income. Explain with example.

Total Answers and Comments: 3

Last Update: May 24, 2009 Asked by: pankaj

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Submitted by: mrforever

Direct Expenses are those expenses which are incurred in relation to manufacture of products directly Eg: Machinery repairs, Labour, Factory etc.
Indirect Expenses are those expenses which are incurred after manufacturing of goods. Eg: Administrative Exp, Advertisement, Selling & Distribution etc.

Above answer was rated as good by the following members:
amitathombre, sn.suresh

January 21, 2008 06:51:58

mrforever

Member Since: January 2008 Contribution: 3

RE: What is the difference between direct expenses and indirect expensesWhat is the difference in direct income and indirect income. Explain with example.

Direct Expenses are those expenses which are incurred in relation to manufacture of products directly Eg: Machinery repairs Labour Factory etc.
Indirect Expenses are those expenses which are incurred after manufacturing of goods. Eg: Administrative Exp Advertisement Selling & Distribution etc.

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February 06, 2008 09:08:59

rajesh.GOPI

Member Since: December 2007 Contribution: 3

RE: What is the difference between direct expenses and indirect expensesWhat is the difference in direct income and indirect income. Explain with example.

Direct expenses are those expences which is directly related to product.Ex: Machinery repairs Machinery transport charges . In direct expenses are those which are indirectly related to product.Ex: lighting power.

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May 20, 2009 11:59:36

c7831887

Member Since: May 2009 Contribution: 10

RE: What is the difference between direct expenses and indirect expensesWhat is the difference in direct income and indirect income. Explain with example.

Already 1 member has answered this question in Manufacturing way. But my answer is:-

If a trader imports some products and sells the same as is where is condition the direct expenses will be freight (ocean/air) customs duty etc expenses incurred by him before he receives the goods to his godown/warehouse for resale/reexport is called direct expenses. After he receives the goods and he may spends for selling the goods is called indriect expenses: like: warehouse/godown rent electricity wages etc.

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