Question: 1. What is the difference between direct and indirect expenses?
2. Suggest a reasonable basis for allocating each of the following indirect expenses to departments:
(a) salary of a supervisor who manages several departments,
(b) rent,
(c) heat,
(d) electricity for lighting,
(e) janitorial services,
(f) advertising,
(g) expired insurance on equipment, and
(h) property taxes on equipment.
3. Research In Motion has many departments. How is a department's contribution to overhead measured?
4. What are controllable costs?