Assignment Help - homework help

  Direct Expenses

Introduction to Direct Expenses

After materials and labour the third element of cost is direct or chargeable expenses. These are expenses that can be suitably allocated directly to a cost unit. As per to Chartered Institute of Management Accountants, London, costs other than material and wages that are incurred for a particular product or saleable services is known as direct expenses. Instances are:

(a) Cost of hiring unique machinery or plant.

(b) Cost of special patterns, moulds and designs.

(c) Fees paid to surveyors, architects and other consultants.

(d) Cost of conveyance and transport to the site of the job or operation..

(e) Cost of royalties and patents.

(f) Cost of defective work example where various trial castings are essential before an suitable one is obtained. The cost of such type of castings shall be occupied as a direct expense.

(g) Sub-contracting expenses.

Characteristics of Direct Expenses

1. A significant feature of direct expenses is that its utility is completed in a single production of a single work order. In case the expense's utility can be comprehensive to a number of work orders, it will be referred as an indirect expense.

2. Direct expenses are a piece of direct cost or prime costs of a product or service.

3. Allocation of direct expenses to cost centers (services or products etc.) is complete. There is direct charge and the question of sharing out does not get arise.

Whether an expense should be considered as a indirect expense or an direct expense relies upon the conditions as also the nature of business. Sometimes, convenience is also one of the factors that might be adopted through managements to decide whether an expense be treated like a direct one or like an indirect one. Last but not the least, the quantum of expenditure might also be referred while classifying an item of expense like direct or otherwise.

Latest technology based Cost Accounting Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Direct Expenses homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Direct Expenses, project ideas and tutorials. We provide email based Direct Expenses homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Direct Expenses. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Cost Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the cost accounting assignments, which may help you to solve your complex issues of Direct Expenses. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Home | Company Overview | Services | Discover Q&A | Sitemap | Contact Us | T & C | Refund Policy | Copyright Policy | Blog | Q&A | Directory

©TutorsGlobe All rights reserved 2022-2023.