Question

Expenses may be direct or ______.

Options

• Indirect

• Money

• Real

• Smooth

Answer 1

Expenses may be direct or indirect.

Explanation:

Expenses are classified as direct or indirect; direct expenses are directly and wholly traceable to a product (e.g., royalties, carriage inward), while indirect expenses cannot be conveniently assigned and are treated as overheads, such as rent, insurance, and lighting.