Direct expense is an expense incurred that varies directly with changes in the volume of a cost object. A cost object is any item for which you are measuring expenses, such as products, services, employees, and customers. Here are several examples of direct expenses:
Direct expenses are typically listed within the cost of goods sold section of the income statement. However, commission expenses are sometimes categorized lower down, in the selling and administrative expenses section of the income statement.
There are many more types of expenses that are not direct expenses - they are called indirect expenses, because they do not vary with changes in the volume of a cost object. Examples of indirect expenses are:
What is the meaning of Freight.
what is direct and indirect expense
Both direct labor and direct material are part of direct expenses incurred by company to manufactured goods or providing services and both have direct relations with direct expenses it means as much as direct material and direct labor as much the direct expenses which is total of both of them.
Some direct expenses include direct labor and materials. Companies try to reduce the cost of direct expenses because they impact the cost of the product.
No
What is the meaning of Freight.
yes , work expenses are direct
what is direct and indirect expense
Both direct labor and direct material are part of direct expenses incurred by company to manufactured goods or providing services and both have direct relations with direct expenses it means as much as direct material and direct labor as much the direct expenses which is total of both of them.
Some direct expenses include direct labor and materials. Companies try to reduce the cost of direct expenses because they impact the cost of the product.
No
Prime Cost(Expenses) = Direct Material + Direct Labour
Direct expenses
yes it is direct
the accounts affected by closing entries are temporary accounts like expenses
the accounts affected by closing entries are temporary accounts like expenses
Assets, expenses, and revenuesAssets, expenses, and retained earningsINCORRECTAssets, liabilities, and dividendsAssets, expenses, and dividendsCORRECT ANSWER