Question

Which of the following expense is
a direct expense in departmental
account
purchase expense
administration expense
advertising expense
depreciation
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Answer 1

Explanation:

There are certain expenses which are incurred for particular departments. These expenses are known as direct expenses and charged directly to the department. Example: Salary paid to workers of sales department.

Answer 2

Purchase expense is a direct expense in a departmental account.

• Direct costs/ expenses are the ones that are related directly to the cost of producing an item.
• These costs include salary, wages, fuel, electricity, etc.
• Purchases made are a direct expense because the product will be made using raw materials.
• But expenses like advertising, depreciation, and administration expenses are calculated on the total, final costs after the production.
• These costs affect more than just the product.