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Explain about Office and administrative expenses
These expenses are not related to factory but they pertain to the management and administration of the business. Such expenses are incurred on the direction and control of the undertaking.
Office and administrative expenses includes:
a. Indirect material used in the factory such as printing and stationary material, broom and dusters, etc.
b. Indirect labour like salary payable to office manager, office accountant etc.
c. Indirect expenses such as insurance, lighting of the office
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