The 3 Biggest Disasters in which of the following expenses incurred by a department store is an indirect expense? History
An indirect expense is one that is not directly related to the cost of goods or services purchased for the enterprise, but rather is incurred by the general public.
In other words, a department store, which is not about selling goods or services, is an indirect expense, not primarily for one’s customers.
As it turns out, there are many departments within a department store, but there is only one department which is the one that deals directly with goods and services on a retail level. The department that deals with goods and services that are purchased through the department store is the one that is considered an indirect expense, in that it is not directly related to the cost of goods or services purchased for the enterprise, but rather is incurred by the general public.
This leads to the question of what an indirect expense is. A direct expense is an expense that the customer pays to the enterprise, whereas an indirect expense is an expense that the customer incurs indirectly through the purchase of goods and services for the enterprise. A direct expense is often determined by the cost of goods, but a direct expense is often determined by the cost of services.
By the way, goods are goods that are bought by the customer. Services are services that are paid for by the customer.
An indirect expense is one that is the result of the direct expense. It’s an expense that is incurred by the customer in order to acquire goods or services for the enterprise. So for example, if a customer wants to spend $20 on clothes for her daughter’s party and she receives a dress from the department store, that’s an indirect expense because that dress is purchased by the customer to wear for the party.
The costs of hiring a designer are also an indirect expense for a designer, which is one that is incurred by the customer. Because the designer will have to work in the shop for the same reason, designer clothing is an indirect expense because the designer will buy clothing for the designer.
Like many things, there are multiple expenses that all contribute to the cost of each item at many different levels. When a department store makes purchases for its own customer, those purchases are a direct expense because the customer will have to pay for them. But the cost of those purchases is also an indirect expense because the department store has to spend money on its own inventory just to sell the merchandise.
There is no such thing as an “indirect expense” as there are just direct and indirect expenses. The cost of the clothing and other items in a department store is an indirect expense because the designer has to buy the clothes and other items in order to sell them and pay for the inventory. But the cost of those purchases is also an indirect expense because the department store has to spend money on its own inventory just to sell the merchandise.