Which of the following expenses incurred by the sporting goods department of a department store is a direct expense?
A) Depreciation expense--office equipment
B) Insurance on inventory of sporting goods
C) Uncollectible accounts expense
D) Office salaries

Question

Quizplus · Accepted Answer

Insurance on inventory of sporting goods is a direct expense as it is directly related to the sporting goods department's operations. A direct expense is a cost that can be easily and directly traced to a department or cost center. Depreciation, uncollectible accounts, and office salaries are indirect expenses as they cannot be directly traced to the sporting goods department.

Which of the Following Expenses Incurred by the Sporting Goods