Which of the following expenses incurred by a department store is a direct cost for the women's shoe department?
A)the commissions of the salespersons of the women's shoe department
B)the salaries for individuals working in the accounting department
C)the heat and lighting of the women's shoe department
D)the allocated rent expense for the clothing department

Question

Quizplus · Accepted Answer

Commissions of salespersons in the women's shoe department are a direct cost because they are directly related to the sales generated by that department. The other options are indirect costs as they are not exclusively attributable to the women's shoe department.

Which of the Following Expenses Incurred by a Department Store