Operating Expenditures Include Salaries, Utilities, Advertising, and Depreciation

question 205

Multiple Choice

Operating expenditures include salaries, utilities, advertising, and depreciation. Presentation of operating expenses by nature

• A) provides very detailed information, with numerous line items.
• B) aggregates costs into groupings based on the primary functional activities in which the company engages.
• C) requires disclosures of additional details regarding the nature of certain expenses.
• D) All of these answer choices are correct.

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Definitions:

Empathy

The ability to understand and share the feelings of another, essential in building effective interpersonal relationships and crucial in service-oriented industries for understanding customer needs.

Tangibles

Physical items or goods that can be seen, touched, and possessed, as opposed to services or digital products.

Knowledge Gap

A type of service gap; reflects the difference between customers’ expectations and the firm’s perception of those expectations.

Service Standards

Benchmarks for the quality of customer service that organizations aim to meet or exceed in their operations.