An expense that does not require allocation between departments is a(n):
A) Common expense.
B) Indirect expense.
C) Direct expense.
D) Administrative expense.
E) All of these.

Question

Quizplus · Accepted Answer

A direct expense is an expense that can be easily traced to a particular department or product. It does not require allocation between departments because it is specific to one department. Common expenses and indirect expenses require allocation between departments, while administrative expenses can be either direct or indirect expenses. Therefore, only option C) is considered as an expense that does not require allocation between departments.

An Expense That Does Not Require Allocation Between Departments Is