Which of the Following Expenses Incurred by the Sporting Goods

question 18

Multiple Choice

Which of the following expenses incurred by the sporting goods department of a department store is a direct expense?

• A) depreciation expense-office equipment
• B) insurance on inventory of sporting goods
• C) uncollectible accounts expense
• D) office salaries

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Definitions:

Economic Profit

The gap between the money made from sales and the forgone benefits of the inputs employed.

Total Revenue

The total amount of money generated by the sale of goods or services related to the company's primary operations.

Assistant's Salary

The compensation provided to an assistant, which could vary based on industry, role, experience, and location.

Economic Profit

The delta between aggregate sales and all-inclusive costs, factoring in both overt and covert costs.