What is indirect Expenses?

Question

Accepted Answer

Indirect expenses are costs that cannot be directly attributed to a specific product or service.

Indirect expenses are also known as overhead costs.
Examples of indirect expenses include rent, utilities, and office supplies.
These expenses are necessary for the operation of a business but are not directly tied to the production of goods or services.
Indirect expenses are typically allocated to products or services based on a predetermined formula or percentage.
Understanding indirect expenses is important for accurate cost accounting and pricing decisions.

Accepted Answer

Cannot be directly associated with a cost object such a product, service or customer.

Accepted Answer

Expenses which are not directly attributable to cost of execution! .i.e Salary, Taxes, electricity etc

Accepted Answer

Indirect expenses are not directly related and assigned to the core business operations of a firm

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