Question

Jane works in the maintenance department, which supports the production department and the research department. Jane's wages are an example of which type expenses? (Check all that apply.) Direct to the maintenance department Indirect to the production department Direct to the research department Direct to the production department Indirect to the research department

Answer 1

Direct to the maintenance department

Explanation:

Jane here works only in the Maintenance department. The work that he does supports both Production as well as Research. We can calculate the expenses, only by associating the department of the employee.

So, the wages should be directly associated to the maintenance department only.

We cannot add one cost to multiple department and it is not the right approach of accounting system. So the below becomes invalid.

Indirect to the production department Direct to the research department Direct to the production department Indirect to the research department