Which of the following is direct expense?

Wages, Carriage Inward, Octroi and Purchases, Wages, Coal Expenses sets of expense are the direct expense of business.

Which of the following expense is direct expense in departmental accounting?

question. Purchase expense is a direct expense in a departmental account.

Which of these is not a direct expense?

Insurance cost is not a direct cost. Explanation for the answer: Direct costs are related to producing a good or service. In simple words, Direct cost is a cost which is directly associated with the product.

Which of the following are direct expenses Mcq?

Solution(By Examveda Team)

Wages, Carriage Inward, Octroi and Purchases, Wages, Coal Expenses sets of expense are the direct expense of business.

Is carriage a direct expense?

Carriage, also termed transportation inwards or Freight inwards is the costs incurred towards the Freight and transportation of goods from the supplier's warehouse to the buyer's business. It is treated as a direct expense and is always reflected on the debit (Dr.)

Direct Costs and Indirect Costs

What is direct expenses in accounting?

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, product lines, services, sales regions, employees, and customers.

What are the direct and indirect expenses?

Direct expenses are those that are linked to a specific cost object, while indirect expenses are associated with the entire business and not specific cost objects. Indirect and direct expenses can be either fixed or variable. Most of a company's expenses are indirect.

What is direct expenditure?

Direct expenditures are payments made against a department's account for those expenses that do not require a purchase order AND when a procurement card is not accepted by the vendor.

What are examples of direct costs?

What are the direct expenses in tally?

Is purchase a direct expense?

Direct Expenses

“Direct” as the word suggests are those expenses which are completely related and assigned to the core business operations of a company. They are mainly related to purchases and production of goods/services. Direct expenses are a part of the prime cost or the cost of goods/services sold by a company.

Which is indirect expenses list?

How do you find direct expenses?

Direct Expenses are considered when the cost of goods sold is ascertained, whereas indirect expenses do not form part of the cost of goods sold. Direct Expenses usually appear on the debit side of the trading account. On the contrary, indirect expenses are shown on the debit side of the profit and loss account.

Is rent direct expenses?

Other costs that are not direct costs include rent, production salaries, maintenance costs, insurance, depreciation, interest, and all types of utilities. Thus, when in doubt, assume that a cost is an indirect cost, rather than a direct cost.

What are the 3 types of expenses?

There are three major types of expenses we all pay: fixed, variable, and periodic.

Is electricity a direct expense?

The cost of electricity is an indirect cost since it can't be tied back to the product or the specific machine. However, the cost of electricity is a variable cost since electricity usage increases with the number of products that are produced or manufactured.

What is expense type?

Types of Expenses

non-operating and fixed vs. variable. Operating. Cost of Goods Sold (COGS) Marketing, advertising, and promotion.

Is office expense a direct expense?

For example, office administrative costs are indirect expenses, but are rarely allocated to anything, unless it is corporate overhead and is being allocated to subsidiaries. These types of indirect expenses are considered period costs, and so are charged to expense in the period incurred.

What is direct expenditure class 12?

Meaning of Direct Expenses: –

The expenses related to the production process or purchase of goods are called direct expenses. In other words, all expenses have a direct relation with the process of production of goods and purchase of goods.

Is discount direct expense?

If a customer is making the payment within the specified period, a certain percentage is allowed on the the payment made by the customer. Cash discount is an indirect expense and to be debited to profit & loss account.

Is printing a direct expense?

Some indirect expenses examples include telephone expenses, printing and stationery expenses, office administration expenses, etc. Q: What are some examples of direct expenses? Ans: Some direct expenses examples are the cost of raw material, wages of labour, fuel, etc.

What are the 4 types of expenses?

What are the 5 types of expenses?

What are examples of expenses?

What are 5 examples of variable expenses?

Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.