Warehouse rent

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Warehouse[Godown] rent will come under Direct expenditure or In direct expenditure?

Replies (7)

indirect expenditure

Obviously Indirect Expenses.

logic is ware house(storage of goods) is not linked with production or direct sale of goods.... indirect expenditure.

Where should medical consumables be classified in case of hospital?

Indirect expenses for the company, because goods are storing in godown (warehouse ) for the purpose of sales . And everything which related to sales considered as indirect. 

Where will factory rent appear?

Factory rent will appear as an expense in the Profit and Loss Account under the category of "Indirect Expenses". These expenses are deducted from the revenue to calculate the Net Profit or Net Loss of the business.


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