An expense that is readily traced to a department because it is incurred for that department's sole benefit is a(n):
A) Administrative expense.
B) Common expense.
C) Recurring expense.
D) Indirect expense.
E) Direct expense.

Question

Quizplus · Accepted Answer

A direct expense is an expense that can be directly attributed to a specific department or product and is incurred for the sole benefit of that department or product. Examples include wages for department employees, raw materials used by the department, or a rental fee for a department-specific piece of equipment.

An Expense That Is Readily Traced to a Department Because