Asked by Camila Almeida on Jul 05, 2024
Verified
Indirect expenses are incurred for the joint benefit of more than one department; they cannot be readily traced to only one department.
Indirect Expenses
Costs that are not directly linked to the production of goods or services, such as administrative and marketing expenses.
Joint Benefit
Benefits or outcomes that are shared or enjoyed by more than one party, often seen in partnerships or collaborative projects.
Department
A distinct part of an organization with a specific responsibility or focus.
- Distinguish between direct and indirect costs and grasp their application within departmental costing.
- Differentiate between expenses that are directly attributed and those that need to be allocated due to shared benefits.
Verified Answer
JR
Jillian RichardsJul 07, 2024
Final Answer :
True
Explanation :
Indirect expenses are shared expenses that benefit more than one department and cannot be easily assigned to one department.
Learning Objectives
- Distinguish between direct and indirect costs and grasp their application within departmental costing.
- Differentiate between expenses that are directly attributed and those that need to be allocated due to shared benefits.
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