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

Question

Quizplus · Accepted Answer

Indirect expenses are expenses that are not easily associated with a specific department or cost center, and which are incurred for the benefit of more than one department. These expenses cannot be directly allocated to a specific department, but are typically allocated based on some type of predetermined allocation method or formula. Examples of indirect expenses include rent, utilities, and insurance.

Expenses That Are Not Easily Associated with a Specific Department