Expenses that are naturally linked to revenues are product costs.Examples of product costs include ________ and ________.
A)Advertising Expense; Utilities Expense
B)Rent Expense; Depreciation Expense
C)Interest Revenue; Interest Expense
D)Cost of Goods Sold; Sales Commissions Expense
E)Administrative Expense; Selling Expense

Question

Quizplus · Accepted Answer

Cost of Goods Sold represents the direct costs associated with producing or purchasing goods that are sold by a company. Sales Commissions Expense represents the costs associated with paying commissions to salespeople for selling the goods. Both of these expenses are directly linked to the revenue generated through the sale of the products.

Expenses That Are Naturally Linked to Revenues Are Product Costs