Direct fixed expenses are fixed expenses that are directly traceable to a segment.

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Direct fixed expenses are those that can be easily traced to a specific segment or product line. These expenses are fixed, meaning they do not vary with changes in production or sales volume, but can be allocated to a specific segment based on usage or need. Examples of direct fixed expenses include rent for a retail store or the salary of a manager solely responsible for a particular segment.

Direct Fixed Expenses Are Fixed Expenses That Are Directly Traceable