Question

Expenses which are incurred to operate the business smoothly and efficiently are known as ________.

• A. operating expenses
• B. manufacturing expenses
• C. trading expenses
• D. financial expenses

Answer 1

The correct option is A operating expenses

Expenses can be classified in two categories i.e. operating expense and capital expense. Operating expenditure are those expense which are essential for running a product or business. These are basically day to day expense of the business for smooth running. This may includes salary, telephone expenses, rent ,electricity expenses etc.