Expenses to promote sales by displaying and advertising merchandise, making sales, and delivering goods to customers are known as:
A)General and administrative expenses.
B)Cost of goods sold.
C)Selling expenses.
D)Purchasing expenses.
E)Non-operating activities.

Question

Quizplus · Accepted Answer

Selling expenses refer to expenses incurred in promoting sales, such as advertising, displaying merchandise, sales commissions, and delivery expenses. General and administrative expenses are non-selling expenses and cover the costs of running a business, such as rent, salaries, and utilities. Cost of goods sold refers to the direct costs of producing or purchasing goods sold by a company, such as materials and labor. Purchasing expenses refer to the costs involved in acquiring goods or services for a company. Non-operating activities are unrelated to a company's primary operations, such as interest income or gains or losses from investments.

Expenses to Promote Sales by Displaying and Advertising Merchandise, Making