Written on Dec, 03, 2011 by in | Leave a comment

Direct expenses are related directly to the cost of product which are to be sold or the services to be rendered to the customer. It means when the quantity of product increases the certain expenses also increase in same ratio, That is why, we call all these expenses as direct expenses. The direct expenses are also known as variable expenses. …

Written on Dec, 03, 2011 by in | Leave a comment

Any amount of expenditure incurred on production of a particular article, product or activity, is called the cost. The cost of a product or service may be divided in to two parts i.e. direct cost or indirect cost. Direct cost:- Direct cost includes the cost of material and other direct expenses relating to the production or services to be rendered …


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