Direct Costs - What is the difference between direct costs and expenses?

Q: What is the difference between direct costs and expenses?

Direct costs affect the profit margin of your product or service. Expenses affect the profit margin of your company as a whole.

Answer

How much money you make from a product or service is directly related to its direct expenses. The overall profit margin of your business is impacted by expenses.

Direct Costs - What is the difference between direct costs and expenses?

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