Indirect expenses should be allocated to departments based on the benefits received by each department.

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Indirect expenses are those expenses that cannot be directly assigned to a particular department or unit, such as rent, utilities, or maintenance costs. These expenses should be allocated to departments based on the benefits received by each department, as some departments may use more resources than others. This helps to ensure that each department is charged a fair share of the indirect expenses and that the overall cost of the organization is accurately reflected in each department's budget.

Indirect Expenses Should Be Allocated to Departments Based on the Benefits