Expenses that support the overall operations of a business and include the expenses relating to accounting, human resource management, and financial management are called:
A) Cost of goods sold.
B) Selling expenses.
C) Purchasing expenses.
D) Administrative expenses.
E) Nonoperating activities.

Question

Quizplus · Accepted Answer

Administrative expenses are those expenses that support the overall operations of a business, including accounting, human resource management, and financial management. These expenses are not directly related to the production or selling of goods or services, but they are necessary for the day-to-day operations of the business. Examples of administrative expenses include salaries for administrative staff, rent and utilities for office space, software and equipment costs, and professional services such as legal and accounting.

Expenses That Support the Overall Operations of a Business and Include