Which of the Following Expenses Incurred by a Department Store

question 66

Multiple Choice

Which of the following expenses incurred by a department store is an indirect expense?

• A) insurance on merchandise inventory
• B) sales salaries
• C) depreciation on store equipment
• D) salary of vice president of finance

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Definitions:

Feedback

Feedback is information provided about the result of an action or process, which can be used for further improvement and adjustment.

Quality Costs

Expenses incurred to prevent, detect, and correct defects in products or services, including costs of warranty and rework.

Appraisal Cost

Expenses associated with the evaluation and inspection of products to ensure quality standards.

Value-added Activity

An operation or process that increases the worth of a product or service, directly contributing to meeting customer requirements.