This is the simple & easy presentation on understanding direct and indirect expenses in finance. From this presentation it is easy to understand the basics of direct and indirect expenses

1. PRESENTATION
Financial accounting
•

2. TOPIC
DIRECT EXPENSES
AND
INDIRECT EXPENSES

3. MEANING OF EXPENSES
• EXPENSES ARE THE COST OF GOODS AND
SERVICES REQUIRED USED UP IN THE PROCESS
OF OBTAINING REVENUE.

4. TYPES OF EXPENSES
DIRECT EXPENSES
AND
INDIRECT EXPENSES

5. DIRECT EXPENSES
EXPENSES WHICH ARE CONNECTED WITH THE
PURCHASE OF GOODS ARE KNOWN AS DIRECT
EXPENSES

6. EXAMPLE OF DIRECT EXPENSES ARE
WAGES FACTORY POWER
LIGHTNING FUEL
• LIGHTNING

7. CUSTOM CONSUMABLE FACTORY
DUTY STORES TAXES
DUTY

8. INDIRECT EXPENSES
ALL EXPENSES OTHER THAN DIRECT EXPENSES
ARE KNOWN AS INDIRECT EXPENSES.
INDIRECT EXPENSES HAVENO RELATIONSHIP
WITH PURCHASE OF GOODS.

9. EXAMPLES OF INDIRECT EXPENSES ARE
• RENT OF BUILDING
• SALARIES TO EMPLOYEES
• DEPRECIATION

10. • ADVERTISEMENT
• COMMISSION
• ELECTRICITY EXPENSES
• STATIONERY AND PRINTING
• LOSS BY FIRE
• TAXES
• FREIGHT OUT