Question

Expenses which cannot be identified with a particular department are called

A. direct expenses.

B. indirect expenses.

C. monthly expenses.

D. weekly expenses.​

Answer 1

Answer:

Expenses which cannot be identified with a particular department are called

B. indirect expenses.

Answer 2

Answer:

B) Indirect expenses

Expenses which cannot be identified with a particular department are called Indirect expenses.

Explanation:

Expenses which cannot be identified to particular department/ cost centre/ profit centre are termed as indirect expenses.

Indirect expenses are apportioned or allocated to the main cost of the product as per nature of work done.

For Example: printing & stationary cost, utilities bills, travelling..etc

These expenses are debited to profit and loss account.