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Q.

Which of the following is an example of an indirect expense?

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a

Rent paid for the office space

b

Depreciation on office equipment

c

Raw materials purchased for production

d

Wages paid to factory workers

answer is B.

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Detailed Solution

Indirect expenses are expenses that cannot be directly traced to a particular product or service. Rent paid for office space is an example of an indirect expense as it cannot be directly linked to the production of goods or services. Rent, utilities, office supplies, legal fees, and insurance are all indirect expenses because they benefit the entire company.

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Which of the following is an example of an indirect expense?