Operating Expenses Directly Traceable to or Incurred for the Sole

question 103

Multiple Choice

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:

• A) miscellaneous administrative expenses.
• B) indirect expenses.
• C) direct expenses.
• D) variable expenses.

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Definitions:

100-percent-reserve Banking

A banking system in which banks are required to keep 100% of their deposits available as reserves, thus eliminating the possibility of bank runs.

Money Supply

The collective sum of money assets in an economy at a certain timeframe.

Standard of Living

The degree of prosperity, convenience, material possessions, and essential needs accessible to a specific social or economic group or particular location.

Open Market

A marketplace where buyers and sellers engage in trade of goods, services, and financial instruments freely and openly.