Indirect exp

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we are trading firm having 25cr of turn over. we show all exp. in the head of indiect exp. where as we pay rent, electricity, freight inward, Insurnace,commission etc. (I think these exp. are Direct exp).  Can you clarify me.

Replies (1)
The expenses which are directly relatable to the business, the expenses which increase or decrease in line with your sales are direct expenses. The expenses such as employee cost, administration expense , marketing etc. are indirect.


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