Direct expenses are incurred for the sole benefit of and are traceable directly to a specific department.

Question

Quizplus · Accepted Answer

Direct expenses are costs that are incurred for the sole benefit of a specific department or cost center and can be directly traced to that department or cost center. Examples of direct expenses include wages of departmental employees, materials used only by a specific department, and rent for a department's dedicated space.

Direct Expenses Are Incurred for the Sole Benefit of and Are