Operating Expenses Include

question 22

Multiple Choice

Operating expenses include

• A) marketing-related expenses.
• B) the cost for independent dealers to prepare for the distribution of the product.
• C) interest on all loans.
• D) income taxes.

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Definitions:

Disposable Income

Post-tax financial resources available for household spending and savings.

Savings

The portion of income that is not spent on consumption or taxes, typically put aside for future use or investments.

Disposable Income

Income available for spending and saving after income taxes have been accounted for.

C + I

An economic formula representing consumer spending (C) plus investment spending (I), components of a country's GDP calculation.