Direct Expenses

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.

Leave a Reply

Your email address will not be published. Required fields are marked *


x

Related Posts

Meaning of Ad Valorem
“Ad valorem” is derived from a ‘latin’ word which means ‘according to value’. Ad valorem is a tax or a duty levied by the state, local or municip...
A Ltd, B Ltd and C Ltd owned 60%, 20% and 20%, respectively, of the voting shares of X Ltd.
A Ltd, B Ltd and C Ltd owned 60%, 20% and 20%, respectively, of the voting shares of X Ltd. There were ten members on the board of directors of X...
ECO – 14: Accountancy II – Solved IGNOU Assignment 2017-18
Question 4: (a) Can a company issue shares at a discount? If so, explain legal provisions relating to issue of shares at a discount under section...
powered by RelatedPosts