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1 year ago

The term used to describe expenses that are incurred by a specific department is?

Business

1 answer:

BARSIC [14]1 year ago

3 0

The term used to describe expenses that are incurred by a specific department is direct expenses.

Accounting divides business expenses into two categories: operating expenses and non-operating expenses.

The operating expenses are associated with the primary activities of the business, such as the cost of goods sold.

Non-operating expenses, on the other hand, are those incurred that are unrelated to the primary activities of the business entity.

Option a. is not correct. Indirect expenses aid in the operation of the business but are not directly traceable to the products, such as corporate office rent, employee salaries, and so on. In general, indirect expenses are recorded on the income statement under the heading "Selling and general administrative expense."
Option b. is also wrong. There are no such things as margin costs.
Option c is not correct. Departmental expenses are expenses, but they are not expenses incurred by a particular department.
Option d. is the correct response. Direct Expenses are expenses incurred solely for the benefit of specific departments.

Hence, direct expense is the answer.

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You might be interested in

Where is market equilibrium located

Lina20 [59]

Answer:

B. at the intersection of supply and demand

Explanation:

Equilibrium is a market condition where there no excess or shortage in demand and supply. It is when the quantity demanded matches the quantity supplied. At equilibrium, buyers and sellers are happy with the prevailing prices.

In a graph showing the demand and supply curve, the equilibrium point is the intersection of the supply and demand curve.

8 0

3 years ago

Cooperton Mining just announced it will cut its dividend from $4.01 to $2.57 per share and use the extra funds to expand. Prior

mina [271]

Answer:

$34.35

The price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.

Explanation:

Computation for the share price to expect after the announcement

Using this formula

Ke = [ D1 / P0 ] +g

Where,

D1 =$4.01

P0 = $50.07

g =3.4%

Let plug in the formula

Ke = [ D1 / P0 ] +g

Ke= [ $4.01 / $50.07] + 0.034

Ke= 0.0800+ 0.034

Ke= 0.1140

Second step is to find the Price after Expansion using this formula

P0 = D1 / [ Ke - g ]

Where,

D1=$2.57

Ke=0.1140

g=4.7%

Let plug in the formula

P0= $ 2.57 / [ 0.1140 - 0.047 ]

P0=$2.57/0.067

P0=$ 34.35

Based on this calculation, we can see that the price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.

Therefore the share price that you would expect after the announcement will be $34.35

8 0

3 years ago

Put the following steps of the problem solving process in correct order. Question 2 options: Implement the Model Identify what i

netineya [11]

Answer:

I. Identify what is the problem

II. Acquire the data

III. Develop the model

IV. Implement the Model.

V. Do the results look right.

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation and all efforts is channeled in the right direction rather than the symptoms.

2. Gathering of information: this helps to consider the options available in solving a problem effectively.

3. Consider your options: this helps to compare the available and viable solutions to the problem.

4. Weigh disadvantages and evaluate a solution: you weigh the disadvantages of each solution, before choosing the one with the least disadvantages.

Hence, the fundamental steps of the problem solving process in the correct order are;

I. Identify what is the problem

II. Acquire the data

III. Develop the model

IV. Implement the Model.

V. Do the results look right.

7 0

3 years ago

Why should employees be wary of participating in the grapevine in a business

Kaylis [27]

Although the grapevine supplements what formal communication does not provide sometimes, and creates a sense of unity among employees, they should be wary due it carries partial information and it's more based on rumors; so it's not always trustworthy, especially when it comes to business, because important decisions depend on reliable sources to ensure favorable outcomes.

8 0

3 years ago

When a company is able to expand its operations by exporting globally, it can often achieve greater economies of scale which res

gogolik [260]

When a business is able to grow by exporting its products around the world, it can frequently attain larger economies of scale, which leads to reduced unit costs.

A company's production unit cost often goes down as it grows. This reduction is the result of economies of scale. By employing the least expensive production techniques, profits will be maximized.

Consumers' prices are lowered as a result of lower cost-per-unit, which increases their real wages overall and makes it easier for them to locate affordable goods.

Businesses from one country offer their goods and services to clients or consumers in another country through the exporting process.

When a company produces more goods at a larger scale while paying less money on average per unit of output, this is a phenomenon known as economies of scale.

Learn more about economies of scale here:

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8 0

1 year ago