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Royalties are usage-based payments made by one party (the "licensee") to another (the "licensor") for the right to ongoing use of an asset or intellectual property.
Royalties are direct expenses because costs incurred for royalty payments can be allocated directly to the production of the particular good/service, and royalty costs vary in direct proportion to changes in production.
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Why is royalties a direct expense?
Royalties are usage-based payments made by one party (the "licensee") to another (the "licensor") for the right to ongoing use of an asset or intellectual property.Royalties are direct expenses because costs incurred for royalty payments can be allocated directly to the production of the particular good/service, and royalty costs vary in direct proportion to changes in production.
Is insurance a direct or indirect expense?
indirect-expense
Is Direct Cost an Expense?
Yes direct costs are expense when they are occurred and benefit of which are taken by company.
Is insurance on inventory a direct expense?
insurance is an indirect expense.............
An expense that does not require allocation between departments is a?
direct expense
How is fuel capture in accounting books?
fuel is a direct expense.direct expense is an expense which can be directly related with production.hence it is recorded as an direct expense in trading account.
Is octroi a direct expense?
yes
What is the difference between direct expense and indirect expense in financial account?
give the full chart of the direct and indirect expenses . detail about this
What is direct labor expense?
Direct labor expense is that amount which is paid to workers who are involved in production of goods in factory and their salary or wages are part of it.
Is interest expense a Direct Cost?
Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.
What is direct expenses and indirect expenses?
what is direct and indirect expense
Difference between operating expense and direct expense?
Operating expense is the cost of running your day-to-day business. Operating expenses include rent, utilities, supplies, and insurance. Direct expense is an expense that varies with changes in the cost object. Direct expenses include materials needed to manufacture a product, freight charges to transport product, and taxes related to the sale of goods.
