An example of an operating expense is:
A)cost of products sold.
B)sales returns.
C)sales commissions paid to employees.
D)interest expense.

Question

Quizplus · Accepted Answer

Operating expenses are those expenses that are incurred in the normal course of business to generate revenue. Sales commissions paid to employees are an example of an operating expense. The other options listed are not examples of operating expenses. Cost of products sold is a direct expense and is considered when calculating gross profit. Sales returns are a deduction from revenue and are also not considered an operating expense. Interest expense is a financing expense and is not an operating expense.

An Example of an Operating Expense Is