Question

Direct expenses are expenses that

A) can be identified with a specific department.

B) can't be identified with a specific department.

C) can be identified with more than one department.

D) None of the above

Answer 1

A) can be identified with a specific department.

Step-by-step explanation:

Answer 2

There are two main types of expenses, which are direct expenses and Indirect Expenses. Direct Expesnes are those Expenses which are directly traceable to the product, for example; direct material, direct labor etc. On the other had indirect Expenses are common costs incurred which are not directly traceable to the product, for example: Indirect material, indirect labor etc.

Hence the correct answer is:

Direct expenses are expenses that

A) can be identified with a specific department.