What Are the Two Main Types of Operating Expenses

question 115

Multiple Choice

What are the two main types of operating expenses?

• A) production and general and administrative
• B) production and office
• C) selling and general and administrative
• D) office and selling

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Definitions:

Price Elasticity

A measure in economics of how much the quantity demanded of a good responds to a change in the price of that good.

Raise Profits

Strategies or actions taken by businesses to increase their net earnings or margin.

Inverse Demand Curve

A graph illustrating the relationship between price and quantity demanded, showing price on the Y-axis and quantity on the X-axis, essentially reversing the axes of a standard demand curve.

Marginal Costs

The increase in the full cost incurred by generating an additional unit of a product or service.