Question

Which of the following statements is false
regarding departmental accounting?
A department-wise balance sheet is
always prepared
Direct expenses are the expenses
which can be directly identified with a
particular department
Each department may keep its own
day-books
Abnormal losses are not charged to
departmental profit and loss account​

Answer 1

Direct expenses are the expenses which can be directly identified with a particular department. is the correct statement.

Answer 2

The false statement is that Direct expenses are the expenses that can be directly identified with a particular department.

Direct expense is an expense that fluctuates straightforwardly with changes in the volume of an expense object. An expense object is anything for which you are estimating costs, for example, items, product offerings, administrations, deals areas, workers, and clients. Direct expenses are normally recorded inside the expense of merchandise sold part of the pay articulation. Nonetheless, commission costs are once in a while arranged lower down, in the selling and authoritative costs segment of the pay articulation.