Operating Expenses Directly Traceable to or Incurred for the Sole

question 101

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

• A) miscellaneous administrative expenses
• B) direct operating expenses
• C) indirect expenses
• D) fixed expenses

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Definitions:

Direct Expense

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Electricity

Form of energy resulting from the existence of charged particles, used for power and lighting.

Stove

A heating appliance used for cooking and heating, operating with various fuel sources like gas, electricity, or wood.

Depreciation

The systematic allocation of a tangible asset's cost over its useful life, reflecting wear and use over time.