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(Shakespeare)
Indirect expenses are those expenses which is not related to manufaturing ,sales & purchase direcly. It
is the part of overheads.
such as:-
salary
office expenses
vehicle running expenses
telephone expenses
postage & courier expenses
printing & stationery
legal & professional charges
depreciation
Indirect expenses are those expenses which are incurred after the manufacturing of goods.
to understand indirect expenses we should first understand direct expenses. direct expenses are those
which are incurred in relation to the manufacturing of a product directly. For Ex. labour,factory expenses,
machinery repairs etc.
So, indirect expenses will be like,selling and distribution expenses,all the administrative
expenses,carriage outwards,advertisment expenses because they are related indirectly with the product
manufacturing and sales.
Example:
A product is manufactured in the factory where lighting charges are 50per unit, labour 30/unit. there after
traportation charges outside factory are 20/unit.
salaries paid(administration):20000
advertisment:15000
so, here, lighting and labour will be direct exp. and transportation outside factory, salary(adms.) and adv.
exp. will be indirect.
B
11. Mnay times we read in financial news paper about ‘FII’.What is the full form of ‘FII’?
(A) Final Investment in India
(B) Foreign Investment in India
(C) Formal Investment in India
(D) Fair Institutional Investment
(E) Foreign Institutional Investment
Ans (E)
18. which of the following countries in the world is the biggest consumer of gold ?
(A) USA
(B) Bangladesh
(C) Russia
(D) India
(E) None of these
Ans (D)