What is the direct and indirect expenses or income?
Taking to the layman's point of viewDirect income is one which is earned directly by way of business activities. Example: Salaried, ProfessionalsIndirect income is one which is earned by way of non-business activities. For example, sale of old newspapers, sale of carton boxes, etc. Example: Sale of Fixed AssetComing to Expenses:Direct as the word suggests are those expenses which are completely related or assigned to the core business operations. They are mainly related to purchases and production of goods/services. Direct expenses are a part of the prime cost or the cost of goods/services sold by a company.Direct expenses can differ for different types of companies, such as manufacturing companies, construction companies, service companies, etc.Direct expenses are shown on the debit side of a trading account.ExamplesWages, Factory rent, Material Cost, Premises Renting, Fuel, Freight, Carriage Inwards etc.Indirect ExpensesUnlike direct, indirect expenses are not directly related or assigned to the core business operations. Indirect expenses are necessary to keep the business up and running, but they can’t be directly related to the cost of the core revenue generating goods or services.Indirect expenses can be different for different types of companies such as manufacturing, construction, service companies etc.Indirect expenses are shown on the debit side of an income statement.ExamplesSalaries, Telephone bills, Printing & Stationery, Legal & Accounting charges, Carriage Outwards etc.Hence, i hope this will be helpful to guide to for the basics of your query.If the content was useful to you make it helpful for others too, by Upvoting the answer please.Thank you for being here..Also read, Mohit Gadher's answer to What are the sources of family income?
How do you calculate the GMV in eCommerce?
This is for an e-commerce company which is a seller too.Gross Merchandise Value is the measure of the gross money collected, irrespective of what you do with it internally. If you have sold something for Rs 100 and if Rs 100 is what the customer has paid you, then Rs 100 is the GMV. Here, GMV will be equal to the gross revenue from sales of the company.This is for an e-commerce company which is a just a market place.For an e-commerce company which is a market-place and not a seller, the Gross Merchandise Value will be called Gross Transaction Value. The calculation will be the same, but here the GTV will not be equal to the gross revenue from sales of the company. Revenues here will the commission earned.Hence, GMV or GTV is the amount of money paid by customers.