Question

21. Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed: a. miscellaneous administrative expenses. b. indirect expenses. c. direct expenses. d. variable expenses.

Answer 1

Answer:

Direct expenses

Explanation:

Direct expenses are defined as costs incurred by a business that are directly traceable to a cost object or business entity.

Some overhead cost for example is directly attributable to a particular department, so this is a direct cost.

Some examples of direct expenses are cost of raw materials, direct labour, customer service, transportation cost of goods from a supplier, and so on.