Which of the Following Would Not Be a Selling Expense

question 16

Multiple Choice

Which of the following would not be a selling expense?

• A)Rent on warehouse space
• B)Advertising on local TV station
• C)Indirect labor
• D)Depreciation on delivery truck

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Definitions:

Average cost method

An inventory costing method that assigns the average cost of all similar items to the cost of goods sold and to ending inventory.

Periodic system

An inventory accounting system that updates inventory balance and cost of goods sold at the end of an accounting period.

Ending inventory

The total value or quantity of goods on hand at the end of an accounting period.

LIFO method

An inventory cost-flow assumption where the last items purchased or produced are the first to be expensed as sold, opposite of FIFO.