This document discusses the classification of different types of expenses - direct, indirect, fixed, and variable - across 10 different business types, including construction companies, furniture businesses, provision stores, photocopy centers, sweets shops, clothing shops, cracker stalls, electronic gadget centers, hotels, and petrol/gas distributors. For each business type, examples are provided for expenses that would fall under each classification.

1. Assignment On
Distribution of Direct,
Indirect, Fixed &
Variable Expenses
Prepared By,
Parth V. Purohit
AMA PGP-IBM (2010-2012)

2. 2
Various Businesses:
 Construction Company
 Furniture Business
 Provision Store
 Photocopy Center
 Sweets’ Shop
 Cloth's Shop
 Crackers Shop
Electronic Gadget Center
 Hotels
 Petrol & Gas Distributors

3. 3
1) Construction Company:
Direct
 Labor Expenses
 Raw material Introduced-
Purchase
 Carriage/Transportation Cost
 Freight
 Misc. Factorycost
Indirect
 Salary to Manager
 Commission
 Electricity & Telephone
Bill
 Depreciation on machinery
 Bank Charges
Fixed
 Salary to Permanent Employees
 Dep. on assets and Machinery
 Minimum Rental of Electricity
and Telephone
 Insurance Premium
 Office Rent
Variable
 Electricity
 Raw material Consumed
 Labor Charges
 Commission
 Wages to temporary Workers
2) Furniture Business:
Direct
 Wood (R.Mat.)
 Freight
 Carriage/Transportation Cost
 Purchase discount
 Inventory Shortfall
Indirect
 Interest on bank loan
 Commission
 Communication Expenses
 Insurance Expenses
 Depreciation on cutting
machinery

4. 4
Fixed
 Salary to Permanent Employees
 Dep. on furniture
 Regular Maintenance Expn..
 Insurance Premium of assets
 Office Rent
Variable
 Electricity
 Raw material Consumed
 Labor Charges
 Commission
 Wages to temporary Workers
3) Provision Store:
Direct
 Purchase of Misc. Items
 Samples to the Customer
 Carriage/Transportation Cost
 Purchase discount
 Misc. Expenses on Purchase
Indirect
 Bank Charges
 Commission
 Electricity Expenses
 Insurance Of Goods
 Advertisement Expn.
Fixed
 Store Rent
 Salary to Workers
 Advertisement Expense
 Bank installment
 Insurance Premium
Variable
 Carriage & Transportation Expn.
 Purchase Expenses
 Labor Charges
 Commission to Distributor
 Advertisement Expn.

5. 5
4) Photocopy Center:
Direct
 Purchase of Papers
 Discount to Big Customers
 Carriage/Transportation Cost
 Inventory Shortfall
 Misc. Shop Expn.
Indirect
 Internet Charges
 Audit Expenses
 Financial Expn.
 Insurance of Machines
 Advertisement Expn.
Fixed
 Shop Rent
 Employee Salary
 Advertisement Expense(Regular)
 Bank Charges
 Insurance Of Machines
Variable
 Govt. Duties
 Tax on income of Shop
 Labor Charges
 Advertisement Expn.
 Misc. Expenses
5) Sweets Shop:
Direct
 Purchase of Milk & Sweets
 Transportation Cost
 Wage Expn.
 Misc. Expenses on Purchase
 Discount to the Customer
Indirect
 Order Charges
 Insurance of Vehical
 Electricity & Gas Expenses
 Audit Expn.
 Advertisement Expn.

6. 6
Fixed
 Office and Store Rent
 Salary to manager
 Rental of light and telephone
 Bank charges
 Insurance Premium
Variable
 Purchase Expenses
 Labor Charges
 Advertisement Expn.
 Carriage & Transportation Expn.
 Free Samples to customer
6) Cloths’ factory:
Direct
 Purchase of Material
 Gift to customers as offer
 Carriage and Fright
 Purchase discount
 Wages to worker
Indirect
 Bank Loan
 Salary to Employees & manager
 Communication charges
 Insurance Of Goods
 Advertisement Expn.
Fixed
 Salary to Workers
 Depreciation on Machinery
 Bank loan interest
 Insurance of Storage
 Factory & Store Rent
Variable
 Tax and Duties
 Purchase Discount
 Labor Expenses
 Advertisement Expn.
 Labor charges

7. 7
7) Cracker stall:
Direct
 Purchase of Crackers
 Discount on purchase
 Transportation Expenses
 Wages
 Purchase Expn.
Indirect
 Rent of Stall
 Salary to salesman
 Insurance of stall
 Advertisement Expn.
 Electricity Expenses
Fixed
 Advertisement Expense
 Insurance Of Stall
 Stall rent for a period
 Deposit of stall
Variable
 Duties on sells
 Tax on income
 Labor Charges
 Misc. Expenses
8) Electronic Gadget Center :
Direct
 Purchase of Electronic Items
 Costof hiring goods
 Carriage and Fright
 Sundry Expn. on Purchase
 Discount to the Customer
Indirect
 Costof Order
 Insurance of Gadget
 Electricity Expenses
 Financial Expn.
 Advertisement Expn.

8. 8
Fixed
 Show-RoomRent
 Salary to Manager
 Advertisement Expenses
 Bank Loan installment
 Insurance Premium of Goods
Variable
 Commission to salesman
 Wages to workers
 Advertisement on festivals
 Transportation Expn.
 Gifts
9) Hotels and Restaurant:
Direct
 Purchase of Vegetables
 Special offer & Discounts
 Transportation of Vegetables
 Wages to waiters
 Inventory shortfall
Indirect
 Bank Cheque Clearance
 Advertisement Expn.
 Salary to Manager
 Electricity Expenses
 Insurance Expn. Of Hotels
Fixed
 Salary to Manager
 Depreciation on Ele. items
 Interest on loan
 Insurance against Theft
 Go-Down Rent
Variable
 Sundary Discount
 Advertisement Expn.
 Tax and Vat
 Duties
 Financial Expn.

9. 9
10) Petrol and Gas Distributor:
Direct
 Purchase of Petrol and Gas
 Wages to Employees
 Carriage/Transportation Cost
 Freight and Octroy
 Loss due to natural causes
Indirect
 Electricity & Telephone
Bill
 Salary to Manager
 Depreciation on machinery
 Bank Charges against clearing
Fixed
 Salary to Manager
 Dep. on assets and Machinery
 Minimum Rental of Electricity
and Telephone
 Insurance Premium
 Office & Pump Rent
Variable
 Electricity
 Commission
 Wages to temporary Workers
 Tax on import
 Duties paid to Govt.
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