Two categories of expenses in merchandising companies are
A)cost of goods sold and financing expenses.
B)operating expenses and financing expenses.
C)cost of goods sold and operating expenses.
D)other expenses and cost of goods sold.

Question

Quizplus · Accepted Answer

Merchandising companies primarily incur expenses related to the cost of goods sold and operating expenses. Cost of goods sold represents the cost of purchasing or manufacturing the products sold, while operating expenses include costs related to running the business, such as salaries, rent, and utilities.

Two Categories of Expenses in Merchandising Companies Are