An example of a direct expense in a department store is:

Question

Quizplus · Accepted Answer

Sales salaries expense is a direct expense because it can be directly linked to the store's sales activities. It is incurred as a result of the store's sales efforts and it can be attributed to the department store directly. Interest expense, rent expense, and utilities expense are indirect expenses because they cannot be directly linked to the store's sales activities. They are incurred irrespective of the level of sales and are necessary for the store's operations.

An Example of a Direct Expense in a Department Store