Operating Expenses Directly Traceable to or Incurred for the Sole

question 170

True/False

Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed direct operating expenses.

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Definitions:

Sales Journal

A specialized accounting journal used to keep track of the sales of items on credit.

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are subtracted.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other items on credit.