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.


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