Which of the following expenses incurred by a department store is a direct cost for the women's shoe department?
A)the salespersons' commissions in the women's shoe department
B)the salaries for individuals working in the accounting department
C)the advertising expense for the service department
D)the allocated rent expense for the clothing department

Question

Quizplus · Accepted Answer

The salespersons' commissions in the women's shoe department are directly related to generating revenue for the department, making them a direct cost. The salaries for individuals working in the accounting department, the advertising expense for the service department, and the allocated rent expense for the clothing department are not directly related to the women's shoe department's operations and are therefore indirect costs.

Which of the Following Expenses Incurred by a Department Store