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Direct VS Indirect Costs: How To Classify Your Business Expenses?

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Business owners have a lot on their minds. They have to consider if there are enough raw materials on hand to produce their products. They have to make sure there is money in the bank to pay their employees. They need to know that all of their customers are satisfied. However, while your cash flow statement tells you if you have the money to cover your expenses, you need to understand direct vs indirect costs to calculate profitability accurately. After all, businesses exist to make money.When reviewing your expenses, it is important to understand the differences between a direct and...

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