Indirect & Direct Expense.

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  • October 4, 2021

Indirect expense

Indirect expenses are those expenses that are incurred to operate a business as a whole or a segment of a business, and so cannot be directly associated with a cost object, such as a product, service, or customer. … Examples of indirect expenses are: Accounting, audit, and legal fees.

Direct expense

Direct expense is an expense incurred that varies directly with changes in the volume of a cost object.

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