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Direct expenses increase or decrease based on the rate of production. For example raw material costs increase as more products are made.

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Q: Briefly explain the direct expenses
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Briefly explain what is classification of cost?

Classification of cost is where expenses are divided into categories that include variable costs, fixed costs, material costs. These costs relate to business activities.


What is direct expenses and indirect expenses?

what is direct and indirect expense


Is direct labor and direct material having any link with direct expenses?

Both direct labor and direct material are part of direct expenses incurred by company to manufactured goods or providing services and both have direct relations with direct expenses it means as much as direct material and direct labor as much the direct expenses which is total of both of them.


List of direct expenses?

Some direct expenses include direct labor and materials. Companies try to reduce the cost of direct expenses because they impact the cost of the product.


What is marginal costing and direct costing?

Marginal costing is a technique of costing where the variable expenses are charged to a product. It ignores the fixed expenses incurred by the business in fixing the price of a product on the assumption that the fixed expenses are not incurred in producing an additional unit.They are treated as period costs& charged directly to P& L A/C.Marginal cost is the cost of producing an additional unit of product.It takes the direct expenses & the variable portion of the overhead expenditure. But Direct costing takes into account only the direct expenses like direct mterials, direct labour & direct expenditure for finding out the cost of a product.

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