Expenses That Are Easily Traced and Assigned to a Specific

question 171

Multiple Choice

Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:

• A) Uncontrollable expenses.
• B) Direct expenses.
• C) Fixed expenses.
• D) Indirect expenses.
• E) Controllable expenses.

---

Definitions:

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair market value of the net identifiable assets.

Retrospectively Apply

The action of applying a new accounting policy to transactions, other events, and conditions as if that policy had always been applied.

Fair-Value Method

Fair-Value Method is an accounting approach where assets and liabilities are recorded at their current market value, reflecting potential changes over time.

Goodwill

Goodwill is an intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets and liabilities at the acquisition date.