In addition to their salary, FAQ Training provides its sales and marketing team with a budget for advertising and supplies. How would you best classify these expenses on the income statement?
A) administrative
B) selling
C) cost of goods sold
D) gross sales
E) allowance

Question

Quizplus · Accepted Answer

Expenses for advertising and supplies for the sales and marketing team are directly related to selling activities. Therefore, they are classified as selling expenses on the income statement. These costs are incurred to promote and sell the company's products or services.

In Addition to Their Salary, FAQ Training Provides Its Sales