Direct expenses are assigned to departments based on

Name: Direct expenses are assigned to departments based on
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Direct expenses are assigned to departments based on actual expenses incurred by each department. This ensures that each department is accountable for the costs it generates, and helps in accurate cost allocation and budgeting. Estimated expenses, percentage of total net sales, and percentage of gross sales do not accurately reflect the actual costs incurred by each department.

Direct Expenses Are Assigned to Departments Based on