What are some examples of direct and indirect expenses?
Direct expenses are costs that can be directly attributed to a specific product or service. Some examples of direct expenses include:
* Materials used in the production of a good
* Labor costs associated with the production of a good
* Shipping costs for a product
* Commissions paid to sales representatives for selling a product
Indirect expenses are costs that cannot be directly attributed to a specific product or service. Some examples of indirect expenses include:
* Rent for a factory or office building
* Utilities for a factory or office building
* Salaries for administrative staff
* Marketing and advertising expenses
* Insurance premiums
Direct expenses are typically included in the cost of goods sold, while indirect expenses are typically included in operating expenses.
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