Semidirect and indirect expenses are allocated to the sales department at the time the expenses are incurred.

Question

Quizplus · Accepted Answer

Semidirect and indirect expenses are allocated to various departments (including the sales department) based on an appropriate allocation base, not necessarily at the time the expenses are incurred. The allocation is often done periodically (e.g., monthly, quarterly) and is based on predetermined rates or bases that reflect the relationship between the expense and the departments.

Semidirect and Indirect Expenses Are Allocated to the Sales Department