The computation of cost of goods sold and operating expenses is based on all of the following except
A) the cost of goods sold.
B) general and administrative expenses.
C) the firm's interest expense.
D) depreciation expenses.

Question

Quizplus · Accepted Answer

The computation of cost of goods sold and operating expenses is based on the cost of goods sold, general and administrative expenses, and depreciation expenses. Interest expenses are a financing expense and are not included in the computation of cost of goods sold and operating expenses.

The Computation of Cost of Goods Sold and Operating Expenses