Below Is a List of Expenses (Direct and Indirect) $\quad$

question 66

Short Answer

Below is a list of expenses (direct and indirect).You are to determine the total direct cost for departments A and B.
Salary Expense $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\$ 8,444$
$\begin{array}{lcc}\text { Department }&[\mathrm{A}]&[\mathrm{B}]\\\text { Cost of Goods Sold } & \$ 100,000 & \$ 300,000 \\\text { Employees } & 2 & 6 \\\text { Value of Equipment in each area } & \$ 8,000 & \$ 12,000 \\\text { Square footage of use } & 200 \text { sq. ft. } & 400 \text { sq. ft. }\end{array}$

Direct cost for department A $ ________ B $ ________

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Definitions:

Department Store

A large retail establishment that offers a wide range of products across multiple categories, usually housed in a single building.

Competitive Strategies

Approaches that organizations use to gain a competitive advantage in the market, differentiating themselves from competitors.

Low-Cost Provider

A business strategy aiming to achieve competitive advantage by offering products or services at lower prices than competitors.

Market Niche

A specific segment of a market targeted by a business, where specialized products or services are offered to meet the particular needs or preferences of a defined set of customers.