Which of the following costs should be recorded as an expense?
A) Administrative employee salaries
B) Depreciation of manufacturing equipment
C) Insurance for the factory building
D) All of these are expenses.

Question

Quizplus · Accepted Answer

Administrative employee salaries are considered operating expenses and should be recorded as such in the income statement. Depreciation of manufacturing equipment and insurance for the factory building are typically considered part of the cost of goods sold or manufacturing overhead, not immediate expenses.

Which of the Following Costs Should Be Recorded as an Expense