Direct expenses

Allocation of expenses, sales, floor space and also classification is a consideration

what are direct expenses

What is direct expense?

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Direct expenses or cost can be traced directly to a cost object such as a product or a department . in other words,direct expenses/costs do not have to be allocated to a product , department,or other cost object . For example,if a company produces artisan furniture,the expenses incured in acquiring the wood and the cost of the craftsman or person are direct cost, they are clearly traceable to the production department and to each item produced and no allocation was needed .

In the case where a department is running at a loss, will it be appropriate to allocate funds from another department to it?

In the case where a department is running at a loss, will it be appropriate to allocate funds from another department to it?

Signs and billboards will help with the upper floor.

son aspectos importantes a considerar los gastos directos y los indirectos

In the case where a department is running at a loss, will it be appropriate to allocate funds from another department to it?