Expenses in accounting are the money spent or costs incurred by a business in an effort to generate revenue. Hence, expenses in accounting are the cost of doing business, including a sum of all the activities that will hopefully generate profit for you.
Types of expense
Direct expense
Direct expenses means all expenses directly connected with the manufacture, purchase of goods, and bringing them to the point of sale. Direct expenses include carriage inwards, freight inwards, wages, factory lighting, coal, water and fuel, royalty on production, etc. Any exp related to factory and production
Indirect expense
An indirect expense is an expense incurred by a firm that is not directly related to the core business operations. To ensure the success of a business indirect expenses must be incurred, but they cannot be directly linked to the costs of its core product/service offering. Indirect expenses include Advertising, Bank charge, Legal charge, Deprecation, Convince, Account fee, Audit fee, Watchman & security charge(security agency), Printing and stationary, Postage and courier,etc.