What do you mean by Direct Expenses?

The Meaning of Direct Expenses In Cost Accounting.

All expenses which can be identified to a particular cost centre and hence directly charged to the centre are known as direct expenses. In other words all expenses (other than direct materials and direct labor) incurred specifically for a particular product, job, department etc. are called direct expenses. These are directly charged to the product. Examples of such expenses are royalty, excise duty, hire charges of a specific plant and equipment, cost of any experimental work carried out specially for a particular job, traveling expenses incurred in connection with a particular contract or job etc.


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