Which of the Following Expenses Would Not Appear on a Selling

question 192

Multiple Choice

Which of the following expenses would not appear on a selling and administrative expense budget?

• A) Sales commissions
• B) Depreciation
• C) Property taxes
• D) Indirect labor

---

Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the economic benefit to consumers.

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded, resulting in market balance.

Surplus Amount

The quantity of a good or service that exceeds what is demanded at a given price.

Producer Surplus

The difference between what producers are willing to receive for a good compared to what they actually receive, essentially the profit.