Expense to be direct or indirect
This query is : Resolved
Nidheesh V
(Querist)
04 June 2016
One company treated as wages for manager/supervisor/machine operator of manufacturing industry as direct expenses.is the treatment correct or not ? or it is indirect expenses ?
Ganeshbabu K
(Expert)
04 June 2016
It is direct expense if those employees involved in manufacturing of product
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06 June 2016
Generally expenses are treated as direct expenses if they are used in the manufacture of product or rendering of services. This treatment is at the discretion of the management. All the expenses for the support function of the organization are treated as indirect expenses.
In the above mentioned case, it can be treated as direct expenses if cost can be directly used for the manufacture of the product
In the above mentioned case, it can be treated as direct expenses if cost can be directly used for the manufacture of the product
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