Which of the Following Would Not Appear in the Operating

question 31

Multiple Choice

Which of the following would not appear in the operating expense budget?

• A)Sales commissions.
• B)Delivery expense.
• C)Advertising.
• D)Depreciation on the production equipment.

---

Definitions:

Average Sale Period

The average time it takes for a product to be sold after it's been produced or acquired by the business.

Balance Sheet

A fiscal summary that outlines a company's assets, liabilities, and shareholders' equity at a certain moment in time.

Sales On Account

Transactions where goods or services are sold on credit, with payment to be received at a later date.

Cost Of Goods Sold

Direct expenses incurred in the production of a company's goods, including the costs of labor and materials.