Question

What are indirect expenses?

What are Overheads or Indirect expenses?

Answer 1

1. Indirect expenses are those expenses that cannot be wholly and directly identified with a specific product or job.
2. These expenses include factory expenses, office expenses and selling expenses.
3. Overheads or indirect expenses are the expenses which are not directly attributable to a specific job or cost centre.
4. Overheads include all expenses other than direct expenses.