SAMI ULLAH KHAN BS ACCOUNTIN & FINANCE 9494

MINOR ASSIGNMENT
QUESTION:
Difference between direct expense and indirect expense?
ANSWER:
 DIRECT EXPENSE:
Direct expenses are those that are paid specifically for the use
of manufacturing purposes of businesses. For example, if you
just pay for the repairing of manufacturing machines in the
business area, this is a direct expense.

 INDIRECT EXPENSE:
Indirect Expenses are those expenses which are not involved
in manufacturing purposes. The examples are utility bills,
insurance, building maintenance etc.