Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:
A) Uncontrollable expenses.
B) Direct expenses.
C) Fixed expenses.
D) Indirect expenses.
E) Controllable expenses.

Question

Quizplus · Accepted Answer

Direct expenses are costs that can be easily traced to a specific department or cost object. These expenses are incurred for the sole benefit of that department, making them easy to assign and track. Examples of direct expenses include salaries and wages of department personnel, materials consumed by the department, and equipment and supplies used exclusively by the department.

Expenses That Are Easily Traced and Assigned to a Specific