Indirect expenses are expenses that
A. may be incurred outside the control of a department manager.
B. can’t be identified with a specific department.
C. are incurred for the general benefit of a company.
D. All of the above
The correct option is D. Indirect expenses refers to those expenses that are incurred to operate a business as a whole or a division of a business and so can not be associated with a particular cost object. An indirect cost may be fixed or variable.
