Income is the revenue a business earns from selling its goods and services or the money an individual receives in compensation for his or her labor, services, or investments.
Direct income
Direct income is the active income of a business earned by selling the goods or services they offer. The term “direct” refers to expenses that are directly linked to and attributable to a company’s main lines of business. They are mostly concerned with the acquisition and manufacture of goods and services. A company’s principal costs include direct expenses or the price of its goods or services.
Indirect income
indirect income is gained from non-business activities that produce revenue. Unlike direct expenses, indirect expenses are not immediately linked to and assigned to a company’s main lines of business. Although they are required to keep the firm running, indirect costs cannot be directly correlated with the price of the primary goods or services that generate income.