If a business decided to classify its expenses under the headings 'Selling and Distribution', 'General and Administrative' and 'Financial', into which groupings would the following fall: 1. depreciation of sales staff's motor vehicles; and 2. bad debts written off?
A) 1. selling and distribution; 2. financial
B) 1. selling and distribution; 2. general and administrative
C) 1. general and administrative; 2. financial
D) 1. financial; 2. selling and distribution

Question

Quizplus · Accepted Answer

1. Depreciation of sales staff's motor vehicles is directly related to the selling and distribution activities of a business. 2. Bad debts written off are considered a financial expense as they relate to the financial management of receivables.

If a Business Decided to Classify Its Expenses Under the Headings