In Accounting Glossary, direct expenses are the part of expenses classification. In expenses classification, we can divide total expenses into direct and indirect. Direct expenses are relating to production and purchasing of goods. All expenses which are incurred for production or purchasing are called direct expenses. It is the part of prime cost or cost of goods sold of company's product. It shows the debit side of trading account. Following are its main example
- Freight
- Carriage inward
- Wages
- factory expenses
- oil and fuel
- factory fixed assets' depreciation
- Royalty on production
- Import duty
- Excise duty
- Clearing and Port Charges
