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Freight charges is direct or indirect exp
Dear Sir,
Freight Charges is Direct Or Indirect Exp For Automobile Showroom We Received Freight Invoice Against Purchased Tractors
Please Guide its Urgent
Thanks
Replies (9)
Quick Summary
Its a Direct Expense since it relates to the business of Automobiles, thereby will be Reflected in the Trading A/c.
Freight on purchase is direct expense and freight on sales is indirect.
When an item is being purchased then it is a direct expense while on the time selling, the freight is indirect expense. I hope this helps.
Freight inwards i.e; freight charges on purchases is a direct expense and frieght outwards i.e; freight paid on sales is an indirect expense as it is a recoverable expense and we collect the same from the customer.
Freight charges are freight rate paid to is the amount paid to a carrier company for the transportation of goods from the point of origin to an agreed location.
The Freight charges are direct charges but Freight on purchase is direct expense and freight on sales is indirect
Freight / Transportation charges incurred towards material movement for Demo, Job Work, Exhibition comes under which head direct or indirect ?
@ Elbin all inward freight charges are absorbed into inventory
| Originally posted by : Yasaswi Gomes new | ||
 |
@ Elbin all inward freight charges are absorbed into inventory |  |
Under which head direct or indirect?
Direct material cost. Sorry for the delay
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