Which one of the following would be reported as an operating expense on a multiple-step income statement of an online retailer but not a local accounting firm?

Question

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Freight-out is an operating expense that online retailers incur when fulfilling orders and shipping products to customers. Local accounting firms may not have this expense since they are not involved in online sales or shipping products. The other options listed (insurance expense, utilities expense, and depreciation expense) could be incurred by both an online retailer and a local accounting firm and would appear on both of their income statements as operating expenses.

Which One of the Following Would Be Reported as an Operating