A firm's financing costs include
A) depreciation expense.
B) interest expense
C) costs of goods sold.
D) both A and B.

Question

Quizplus · Accepted Answer

Financing costs refer to the costs incurred by a firm for financing its operations. Interest expense is a major component of financing costs, as it represents the cost of borrowing funds. Depreciation expense and costs of goods sold are not considered financing costs.

A Firm's Financing Costs Include