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Direct expenses are directly related to the production of the product sold or service rendered, they may differ for different types of companies. Examples of Direct Expenses
Unlike direct, indirect expenses are not directly related and assigned to the core business operations of a firm. Indirect expenses are necessary to keep the business up and running, but they can’t be directly related to the cost of the core revenue-generating products or services.
Just like direct expenses, indirect expenses can also be different for different types of organisations. These are usually shared costs among different departments/segments within the firm.
Examples of Indirect Expenses
