Direct or Indirect Exp

Hi,

Salary is an indirect expenses. Direct expense are those which adds to the cost of goods.

Cheers

Pradeep Jain

in my opinion salary paid to kitchen staff is comes under direct expenditure

others views also welcome

Kitchen Staff salary should be charged as Direct Exp. Bcoz it is directly related to main business for Restaurant . others should be as indirect.

Direct Expense

Service staffs = indirect expenses ( S&D o/h)

Kitchen staffs = Direct expenses

office stafffs = indirect expenses (Admn o/h)

others friends views also welcomeeeeeeeeeeeee

I fully agree with Sir CMA Nanjunda

agree with Sir CMA Nanjunda

yes i agree with Mr CMA Nanjunda and my answer is wrong

What is the reason can anybody explain?

Salary paid in cash or bank this is Indirect Expenses

Kitchen Exp. like Purchase Vegitable, Water, etc is direct exp.

I think this is not Wages ok

Salary paid to kitchen staff is direct expense.. Because without their work, the product cannot be made.. Their contribution is thus direct, while services of other staffs are indirect to the organisation.

Hi vijaykumar,

Particulars                               Nature of expense                Reason

Salary paid to kitchen staff                    Direct expense                   Directly related to the main business

Salary paid to Service staff                    Direct expense                  Directly related to main business

Salary paid to office staff                        Indirect expense               Related to adminstration of the business                                                                                                                       rather operatations   

obviously its indirect expense..