Expenses that are not easily associated with a specific department, and which are incurred for the joint benefit of more than one department, are:
A) Fixed expenses.
B) Direct expenses.
C) Variable expenses.
D) Indirect expenses.
E) Uncontrollable expenses.

Question

Quizplus · Accepted Answer

Indirect expenses are costs that are not directly tied to a specific department or function, but are necessary for the overall functioning of the organization. These expenses are incurred for the joint benefit of more than one department and can include items such as rent, utilities, and insurance. Indirect expenses are also sometimes referred to as overhead costs.

Expenses That Are Not Easily Associated with a Specific Department