Question

Which of the following is not the example of direct expense?

Options

• Fees paid to an architect of a building.

• Salary of timekeeper.

• Rent paid to hire special machine required for a particular contract.

• Cost of defective work incurred in connection with a particular job.

Answer 1

Salary of timekeeper.

Explanation:

Rent paid for hire of a special machine required for a particular contract, cost of defective work incurred in connection with a particular job, fees paid to the architect of a building, etc., are examples of direct expenses.