Cost accounting: what counts as direct expenses (chargeable expenses)? Direct expenses are costs traceable to a specific job/order (e.g., special tool hire, royalties). From the given categories, identify which are direct expenses.
Mechanical Engineering
Industrial Engineering and Production Management
Difficulty: Easy
Choose an option
-
AFactory expenses (indirect manufacturing overhead)
-
BSelling expenses
-
CAdministrative expenses
-
DNone of these
Answer
Correct Answer: None of these
Explanation
DefinitionsDirect (chargeable) expenses are directly attributable to a job (e.g., special tools hire, drawings, patents/royalties for that job). Factory, selling, and administrative expenses are generally indirect.
ConclusionGiven choices do not list direct (chargeable) expenses; hence “none of these”.
Final AnswerNone of these.