[amp_mcq option1=”Administration expense” option2=”Non-administration expense” option3=”Selling expense” option4=”Operating expense” correct=”option4″]
The correct answer is: D. Operating expense.
Operating expenses are expenses that are directly related to the day-to-day running of a business. They include costs such as rent, salaries, utilities, and marketing. Operating expenses are deducted from revenue to calculate a company’s net income.
Administration expenses are expenses that are not directly related to the production of goods or services. They include costs such as office rent, salaries, and utilities. Administration expenses are also deducted from revenue to calculate a company’s net income.
Selling expenses are expenses that are incurred in the process of selling goods or services. They include costs such as sales commissions, advertising, and shipping. Selling expenses are also deducted from revenue to calculate a company’s net income.
Non-administration expense is not a valid term.