The spend on any item that supports the operation of the firm is categorized within the direct spend category.

Question

Quizplus · Accepted Answer

Direct spend refers to the purchase of goods and services that are directly incorporated into a product being manufactured, such as raw materials and components, whereas indirect spend refers to expenditures on goods and services that support the operation of the firm, such as office supplies, marketing services, and IT equipment.

The Spend on Any Item That Supports the Operation of the Firm