An expense that does not require allocation between departments is a(n):
A)Common expense.
B)Indirect expense.
C)Direct expense.
D)Administrative expense.
E)All of the options are correct.

Question

Quizplus · Accepted Answer

A direct expense is incurred solely for the benefit of one department and does not need to be divided between departments. Therefore, it does not require allocation. The other options may require allocation between different departments or cost centers.

An Expense That Does Not Require Allocation Between Departments Is