ECONOMICS

Detailed explanation-1: -Rent for a factory, for example, could be tied directly to the production facility. Typically, rent would be considered overhead.

Detailed explanation-2: -Indirect expenses are expenses other than direct expenses. These refer to those expenses which cannot be directly, conveniently and wholly allocated to cost centers or cost units. E.g. factory rent & insurance, power, general repairs etc.

Detailed explanation-3: -Expenses which are not directly connected with the manufacturing or trading activity are called as indirect expenses. These are essential expenses but does not have any direct connect with trading of the business. Examples are Rent, Rates & Taxes, Salaries.

Detailed explanation-4: -Rent expense is the cost incurred by a business to utilize a property or location for an office, retail space, factory, or storage space. Rent expense is a type of fixed operating cost or an absorption cost for a business, as opposed to a variable expense.