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:

Wholly Owned Subsidiary

A company whose entire stock is held by another company, making it fully controlled by the parent company.

Parent Company

A corporation that owns enough voting stock in another company to control management and operations by influencing or electing its board of directors.

Direct Exporting

The process of selling goods and services from one country directly to customers in another country without using intermediaries.

Foreign Agent

An individual or organization that represents the interests of a foreign country within another nation, often required to register with the local government.