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:

Nonmonetary Attractiveness

The appeal of something based on non-financial factors, such as location, reputation, or quality of life.

Supply of Low-skill Workers

The availability of workers without specialized training or high qualifications in the labor market.

Corrected Earnings

Earnings that have been adjusted for factors such as inflation, accounting changes, or tax laws to provide a more accurate measure of real profitability.

Earnings Differential

The difference in wages or salaries stemming from differences in job difficulty, location, skills required, or other factors.