Question

______ is (are) an example of operating expenses.

• A. General administration expenses
• B. Selling and marketing expenses
• C. Financial charges
• D. All the three

Answer 1

Answer: (D)

All the three

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.