Which of the following is not considered an operating expense?
A)General office expenses.
B)Cost of goods sold.
C)Freight-out expense.
D)Advertising expense.

Question

Quizplus · Accepted Answer

Cost of goods sold is a direct expense and is part of the cost of producing or purchasing goods or services that are sold. Operating expenses, on the other hand, are expenses incurred in the day-to-day operations of a business, such as office expenses, freight-out expense, and advertising expense.

Which of the Following Is Not Considered an Operating Expense