Answer the following statements true (T) or false (F)
1. Departmental salary expenses are direct expenses of that department.
2. The concepts of direct expenses and uncontrollable costs are essentially the same; also,
indirect expenses and controllable costs are essentially the same.
3. The number of hours that a department uses equipment and machinery is a reasonable basis for allocating depreciation.
4. Direct expenses are costs readily traced to a department because they are incurred for that
department's sole benefit.
5. Advertising expense can be reasonably allocated to departments on the basis of each
department's proportion of sales.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
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