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What are direct expenses

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What are direct expenses
  • 1 answers

Amar Kumar 8 years, 3 months ago

Direct expense is an expense incurred that varies directly with changes in the volume of a cost object. A cost object is any item for which you are measuring expenses, such as products, product lines, services, sales regions, employees, and customers. 

Examples of direct expenses:
The materials used to construct a product for sale.
The cost of the freight needed to transport goods to and from a manufacturing facility.

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