What are the Heads Under Which Indirect Expenses are Divided

what are the heads under which indirect expenses are divided

Indirect expenses are those that occur outside the direct costs of producing a good or service. These can include things like marketing costs, employee benefits, and IT costs. It can be tricky to figure out how to divide indirect expenses among various headings, such as production, sales, and administrative.

Fortunately, software is available that can help you with this task. This article will introduce you to two such programs – QuickBooks and Microsoft Excel – and show you how they can help you manage indirect expenses more effectively.

Indirect expenses are divided among the direct and indirect heads

Direct heads:

-Operating expenses
-Interest expense
-Taxes paid
-Depreciation
Indirect heads:

-Salaries and wages paid to employees (including subcontractors)
-Consulting fees paid to outside professionals
-Other indirect costs

The indirect head is determined by adding up all of the other indirect expenses

This would include things such as rent, utilities, and phone bills.

The direct head is determined by adding up all of the other direct expenses

Indirect expenses are divided between the direct and indirect heads.
The indirect head is determined by adding up all of the other indirect expenses
This is then divided between the direct and indirect heads.

There is one indirect head for each type of expense

– Administrative, General and Extraordinary
– which are then divided among the various other indirect heads. The following is a list of the various indirect heads and their corresponding expenses:
– Administrative Expenses
– General Expenses
– Extraordinary Expenses
– Research and Development
– Advertising and Marketing
– Sales and Marketing

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What are indirect expenses?

Indirect expenses are those which are not directly tied to a specific product or service. This means that indirect expenses can be anything from marketing costs to administrative costs. Some of the most common types of indirect expenses include research and development, manufacturing overhead, and distribution costs.

How indirect expenses are divided

Indirect expenses can be divided into three heads: direct costs, allocated indirect costs, and residual indirect costs. Direct costs are those that are incurred by a company in order to produce or deliver a product or service. Allocated indirect costs are those that are directly attributable to producing or delivering a product or service, while residual indirect costs represent any indirect costs not directly attributable to production or delivery.

Conclusion

In order to properly allocate indirect expenses, businesses must understand the heads under which indirect expenses are divided. This information can be found on an income statement or a balance sheet, and it will help you determine where to allocate your resources most effectively.

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