Which of the Following Is an Operating Expense

question 8

Multiple Choice

Which of the following is an operating expense?

• A) Salaries Expense
• B) Payroll Tax Expense
• C) Freight-in
• D) Both A and B are correct.

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Definitions:

Invisible Hand

A concept introduced by Adam Smith to describe how individuals’ self-interested actions can lead to positive social and economic outcomes for the community as a whole.

Self-Interest

An individual’s actions and decisions motivated by personal gain or benefit.

Public Interest

Denotes the well-being of the general public and the consideration of what is beneficial for society as a whole.

Economic Profits

Profits exceeding the opportunity costs of all inputs, indicating a return beyond the norm expected in the market or industry.