Operating expenses include cost of goods sold.

Name: Operating expenses include cost of goods sold.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Operating expenses refer to expenses that a business incurs in the course of ongoing operations, such as rent, utilities, salaries, and advertising. Cost of goods sold, on the other hand, refers specifically to the direct costs associated with producing or acquiring the goods that a business sells. It is a separate category of expenses that is subtracted from revenue to calculate gross profit.

Operating Expenses Include Cost of Goods Sold