Those expense which are related to business are direct expense
All others are indirect expense
For example
for a factory,salary paid to workers is direct expense but salary paid to accountant is an indirect expense
(as workers are directly used in manufacturing process)
but for a CA Firm,salary paid to accountant is an direct expense (as accountant are directly used in accounting process)
Written on Jan. 31, 2017, 6:04 p.m.