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

Question

Quizplus · Accepted Answer

Insurance on inventory of sporting goods is a direct expense because it is incurred specifically for the sporting goods department and it directly relates to the inventory being sold in that department. Depreciation expense on office equipment, uncollectible accounts expense, and office salaries are indirect expenses that are not directly related to the sporting goods department.

Which of the Following Expenses Incurred by the Sporting Goods