Direct fixed expenses are the fixed costs that are traceable to the segments and would remain even if one of the segments was eliminated.

Question

Quizplus · Accepted Answer

Direct fixed expenses are costs that can be directly traced to a specific segment and would continue to incur even if that segment was eliminated. This is different from indirect fixed expenses which are costs that cannot be directly attributed to a specific segment and would not continue if that segment was eliminated.

Direct Fixed Expenses Are the Fixed Costs That Are Traceable