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 termed:
A) miscellaneous administrative expenses.
B) indirect expenses.
C) direct expenses.
D) variable expenses.

Question

Quizplus · Accepted Answer

Operating expenses that are directly traceable to or incurred for the sole benefit of a specific department and are subject to the control of the department manager are known as direct expenses. These expenses can be easily allocated to a specific department and are essential to determining the department's profitability.

Operating Expenses Directly Traceable to or Incurred for the Sole