Which of the Following Is Not Reported as an Operating

question 87

Multiple Choice

Which of the following is not reported as an operating expense on the income statement?

• A)Administrative expenses.
• B)Research and development expense.
• C)Interest expense.
• D)Selling expenses.

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Definitions:

Equivalent Units

A concept in process costing that represents the amount of work done on incomplete units, expressed in terms of fully completed units.

Direct Labor

Direct labor refers to the wages paid to workers directly involved in the manufacture of products or the provision of services.

Factory Overhead

All indirect costs related to manufacturing beyond direct materials and direct labor, including utilities, depreciation of factory equipment, and factory rent.

Process Cost System

An accounting method used to track cost related to processes or departments when mass-producing identical or similar products.