INDIRECT EXPENDITURE Meaning and
Definition
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Indirect expenditure refers to the costs incurred by a business or organization that are not directly related to the production of goods or services. These expenses are necessary for the overall functioning and support of the business but are not directly linked to the creation of a specific product or service.
Indirect expenditure includes various types of costs and expenses that support general operations, such as administrative expenses, facility costs, advertising and marketing expenses, legal and professional fees, insurance premiums, utilities, and other miscellaneous overhead expenses. These costs are typically not easily attributable to one specific product or service and are shared across the entire organization.
Indirect expenditure is important to track and manage effectively in order to assess the overall financial health and efficiency of the business. By analyzing and controlling these expenses, businesses can optimize their operations, reduce unnecessary costs, and allocate resources more efficiently. Effective management of indirect expenditure also helps in determining the profitability and competitiveness of the organization in the market.
Overall, indirect expenditure comprises the various costs and expenses required to maintain the overall infrastructure, administration, and support functions of a business. It is distinct from direct expenditure, which directly relates to the production or provision of specific goods or services.
Common Misspellings for INDIRECT EXPENDITURE
- undirect expenditure
- jndirect expenditure
- kndirect expenditure
- ondirect expenditure
- 9ndirect expenditure
- 8ndirect expenditure
- ibdirect expenditure
- imdirect expenditure
- ijdirect expenditure
- ihdirect expenditure
- insirect expenditure
- inxirect expenditure
- incirect expenditure
- infirect expenditure
- inrirect expenditure
- ineirect expenditure
- indurect expenditure
- indjrect expenditure
- indkrect expenditure
- indorect expenditure
Etymology of INDIRECT EXPENDITURE
The word "indirect" comes from the Latin word "indirectus", which is a combination of the prefix "in-" meaning "not" or "without" and the word "directus" meaning "straight" or "direct". The word "expenditure" comes from the Latin word "expendere", which means "to weigh out" or "to spend". When these two words are combined, "indirect expenditure" refers to costs or expenses that are not directly related to a specific project or activity.
