Direct Expenses and Indirect Expenses

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In the context of retail management, understanding the distinction between direct and indirect expenses is crucial for effective buying and merchandising. These two categories of expenses significantly impact the overall profitability and financial health of a retail business.

Direct expenses are costs that can be directly traced to the production of goods or services. In a retail environment, these expenses are directly associated with the acquisition of inventory and the selling process. Common examples of direct expenses include the cost of goods sold (COGS), which encompasses the purchase price of merchandise, shipping costs, and any handling fees incurred during the procurement of products. For instance, if a retailer purchases clothing from a manufacturer, the direct expenses would include the wholesale price of the garments, transportation costs to bring them to the store, and any costs related to receiving ________ ____ ____ __________ __ ____________ ____________ ____ ________ __ _________ __________ __________ ____ __________.
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Degree : BACHELOR DEGREE PROGRAMMES
Course Name : BBA in Retailing with the Modular Apporach
Course Code : BBARL
Subject Name : Buying and Merchandising-II
Subject Code : BRL 10
Year : 2024 2025