Power and Fuel Direct expense or Indirect expense

2535 views 5 replies
Hi Sir or Madam

Could some one please advise

For a Hospital

Power and Fuel can be accounted under Direct expense or Indirect expense

Thanks in advance
Replies (5)
Indirect Expenses...
Power and fuel used in the manufacturing process of the product of which you are doing business is direct otherwise indirect. In your vase it is indirect.

Hospital and school accounting is different! Why?

Indirect expense

 

The classification of power and fuel expenses as either direct or indirect expenses depends on the specific context and accounting practices of the hospital. Generally, if power and fuel expenses can be directly traced and allocated to a particular cost center or department within the hospital, they may be considered direct expenses. On the other hand, if these expenses are incurred for the overall operation of the hospital and cannot be directly attributed to a specific cost center, they may be treated as indirect expenses. It is advisable to consult with a professional accountant or refer to relevant accounting standards for accurate categorization based on the hospital's specific circumstances.

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register