Expenses

Meaning : All the expenditure other than material and labour are termed as expenses.
Type : There are two types of expenses,

1. Direct expenses : Which are specifically incurred for doing a particular work or service or identified with a particular product or job or process. These are also known as chargeable expenses. It includes all the direct expenses other than direct material or direct labour.
2. Indirect expenses : Expenses which cannot be charged to a product to a product or job or process directly and which are neither indirect material nor indirect labour are regarded as indirect expenses.