Which of the following expenses incurred by a department store is an indirect expense?
A) insurance on merchandise inventory
B) sales salaries
C) depreciation on store equipment
D) salary of vice president of finance

Question

Quizplus · Accepted Answer

The salary of the vice president of finance is an indirect expense because it is not directly related to the sale of merchandise. Insurance on merchandise inventory, sales salaries, and depreciation on store equipment are all examples of direct expenses as they directly relate to the sale and maintenance of merchandise in the department store.

Which of the Following Expenses Incurred by a Department Store