Typically,
Direct Expenses are shown as a monetary value and in order for you to
capture meaningful trend analysis you will need to express them as a
percentage of departmental Turnover.
Example:
A) Direct Expenses = R13,524 B) Total Turnover = R187,836 C) Direct Expense % = 7.2%
Discussion:
Related Terminology:
The
Direct Expenses of the Parts Department are also known as
Departmental Expenses and refer to the total expenses incurred. since there are no Variable Expenses within the Parts Department, all expenses are therefore Semi-Fixed Expenses.