What are the two main types of operating expenses?
A) production and general and administrative
B) production and selling
C) selling and general and administrative
D) office and selling

Question

Quizplus · Accepted Answer

Operating expenses can generally be divided into two main categories: selling expenses and general and administrative expenses. Production expenses are often considered a separate category and relate more specifically to the costs involved in creating a product or service. Option A includes production expenses, and option B only includes selling expenses, which is not the complete picture. Option D includes office expenses as a separate category, which is not commonly considered a main operating expense category.

What Are the Two Main Types of Operating Expenses