Direct Expenses (or Chargeable Expenses)
All expenses which can be identified to a particular cost centre and hence directly charged to the centre are known as direct expenses. In other words all expenses (other than direct materials and direct labour ) incurred specifically for a particular product, job , department etc. are called direct expenses. These are directly charged to the product . Examples of such expenses ate royalty, excise duty, hire charges of a specific plant and equipment, cost of any experimental works carried out specifically for a particular job, travelling expenses incurred connection with a particular contract or job etc.