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Answer in One Sentence Only. What Do You Mean by Indirect Expenses? - Book Keeping and Accountancy

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Question

Answer in one sentence only.
What do you mean by indirect expenses?

One Line Answer

Solution

Those expenses which are not directly related with the manufacturing of goods but are incurred by the firm in the course of its normal business activities, such as administrative expenses, selling expenses, distribution expenses, etc., are known as indirect expenses. Such expenses are debited to the Profit & Loss Account.

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Chapter 2: Partnership Final Accounts - Exercise 1 [Page 64]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 2 Partnership Final Accounts
Exercise 1 | Q 9 | Page 64
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