Direct labor costs
indirect cost
what is direct and indirect expense
The expenses those come in the debit side of the Profit & Loss Account of the Company are all indirect expenses.
Direct cost is that cost which is directly attributable to units of product like raw material and labor while indirect cost is not directly attributable like factory maintenance cost.
indirect expeneses
it is Administative Expenses And Indirect Expenses
Indirect Expenses are those expenses which are incurred after the manufacturing process is over, e.g. selling and distribution expenses, all the administrative expenses, carraige outward, advertisement expenses because they are related indirectlt with the product manufacturing and sales.
All fixed operating expenses from overhead (indirect) departments
Assigning indirect expenses to the department
overheads are three indirect elements of cost. The three elements being-i ndirect material, indirect labour and indirect expenses. these indirect elements of cost have no bearing whatsoev er with the level of activity or volume of production. Examples of these indirect elements are- in making shirts. buttons and thread will be indirect material, rent of the factory will be indirect expenses and salary of the storekeeper will be indirect labour these three would be collectively called overheads.
there are 4 types
Direct and indirect