Expenses That Are Closely Related to and Can Easily Be

question 117

Multiple Choice

Expenses that are closely related to and can easily be allocated to a specific department during an accounting period are:

• A)operating expenses.
• B)indirect expenses.
• C)direct expenses.
• D)allocated expenses.

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Definitions:

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose, affecting its depreciation calculation.

Patent Rights

This is the legal protection granted to an inventor or assignee offering exclusive rights to use and profit from an invention for a certain period.

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period of time.

Legal Life

The duration for which a legal entity, patent, copyright, or other legal protection is valid or enforceable.