Operating Expenses Incurred by Support Departments Are Indirect Expenses to a Profit

question 60

True/False

Operating expenses incurred by support departments are indirect expenses to a profit center.

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Definitions:

Specialization

A method of production where a business or area focuses on the production of a limited scope of goods or services to gain greater degrees of productive efficiency.

Bongos

A pair of small, drum-like musical instruments connected in the center by a bridge, typically played with the hands.

Frisbees

Flat, circular flying discs often used for games and sports.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.