Delivery expense is a(n)________.
A) administrative expense
B) part of Cost of Goods Sold
C) operating expense
D) overhead expense

Question

Quizplus · Accepted Answer

Delivery expenses are considered as operating expenses as they are incurred for the normal day-to-day operations of a business, specifically related to the delivery of goods to customers. Administrative expenses are usually associated with running the administrative functions of a business, while overhead expenses include all indirect expenses that cannot be directly attributed to a specific product or service. Cost of goods sold includes only the expenses directly related to the production or purchase of goods that are sold.

Delivery Expense Is A(n)________