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Financial Statements — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountFinancial Statements3 Marks
Question
What is meant by Indirect Expenses? Give two examples.
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Answer

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. A cost object is any item for which you are separately measuring costs. Examples of indirect expenses are:
  1. Accounting, audit, and legal fees.
  2. Business permits.
  3. Office expenses.
  4. Rent.

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