Direct & indirect expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2013 Dear Sir / Madam

Please give the knowledge for direct & Indirect Expenses & which expenses are includes in direct Expenses & which are includes in Indirect Expenses.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

14 June 2013 Direct expenses are which are directly related to production/sale of the company, such as purchases, direct labour works,freight inward etc.

Indirect expenses are not directly related to production/sales of the company, example admin expenses

for detail please refer the Cost accounting standard -10

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

15 June 2013 For TRADING CONCERNS

Expenses which are incurred to purchase goods are direct expenses

For MANUFACTURING CONCERNS

Expenses which are incurred to produce goods.

Rawmaterial,stores&consumables,wages,.....etc.,are direct expenses..

selling and administration expenses are considered as indirect expenses

As said by ramesh sir..please do refer cost accounting standard 10 for detailed,..

Thanks ®ards'
Ganesh babu k

Upgrade to CAclubindia Pro. Subscribe Now!