Indirect Expenses

Expenses which are related to sale of goods and administration of organization are called indirect expenses. For example: salaries, depreciation, interest expenses, Bad debts,

OR

All expenses other than direct expenses are called indirect expenses.

Indirect expenses area unit those expenses that area unit incurred to work a business as a full or a phase of a business, then can't be directly related to a price object, like a product, service, or client. a price object is any item that you're one by one measure prices.



Examples of indirect expenses are:
Accounting, audit, and legal fees
Business permits
Office expenses
Rent
Supervisor salaries
Telephone expense
Utilities

Indirect expenses might or might not be allotted. as an example, workplace body prices area unit indirect expenses, however area unit seldom allotted to something, unless it's company overhead and is being allotted to subsidiaries. These styles of indirect expenses area unit thought-about amount prices, then area unit charged to expense within the amount incurred.

Indirect expenses that area unit industrial plant overhead are allotted to those units created within the industrial plant throughout a similar amount that the indirect expenses were incurred, then can eventually be charged to expense once the product to that they were allotted area unit oversubscribed. See the overhead allocation article for a lot of info. samples of things enclosed in industrial plant overhead are:
Production supervisor salaries
Quality assurance salaries
Materials management salaries
Factory rent
Factory utilities
Factory building insurance
Fringe edges
Depreciation
Equipment setup prices
Equipment maintenance
Factory provides
Factory tiny tools charged to expense