Goods costing ₹10,000. were used as advertising material.
is it a direct expense or indirect???
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Trading and P&L A/c
Replies (3)
indirect
it's a indirect expense
any expenses to be direct , they should be directly attributable to purchase (in case of trader ) or in production of finished goods (in case of manufacturer)
or it should directly fluctuate with output
any expenses to be direct , they should be directly attributable to purchase (in case of trader ) or in production of finished goods (in case of manufacturer)
or it should directly fluctuate with output
In short,those items which are charged to p&l a/ c are termed as indirect expenses
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