An example of a selling, general and administrative expense is:
A) cost of goods sold.
B) sales.
C) sales commissions paid to employees.
D) interest expense.

Question

Quizplus · Accepted Answer

Selling, general and administrative expenses are expenses that are not directly related to producing goods or services, but rather to the administration of the business. Sales commissions paid to employees would fall under this category as they are a cost associated with selling the product or service. Choices A (cost of goods sold) and B (sales) are not a part of SG&A, as they are directly related to the production and sale of goods. Choice D (interest expense) is not a part of SG&A, as it is a financial cost associated with borrowing money.

An Example of a Selling, General and Administrative Expense Is