Expenses are divided into two categories-cost of goods sold and operating expenses.

Question

Quizplus · Accepted Answer

Expenses in accounting are indeed divided into two main categories: Cost of Goods Sold (COGS), which are the direct costs attributable to the production of the goods sold by a company, and Operating Expenses, which are the costs related to the day-to-day operations of a company but are not directly tied to the production of goods or services.

Expenses Are Divided into Two Categories-Cost of Goods Sold and Operating