Operating expenses incurred for the entire business as a unit that are NOT subject to the control of individual department managers are called indirect expenses.

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Indirect expenses are those expenses that cannot be directly attributed to a specific department or cost center and are incurred for the overall operations of the business. They are controlled and managed by top management and are not subject to the control of individual department managers. Examples of indirect expenses include rent, insurance, taxes, utilities, and general administrative expenses.

Operating Expenses Incurred for the Entire Business as a Unit