Which of these should be classified as an administrative expense in the income statement of a retailer?

Question

Quizplus · Accepted Answer

Depreciation on office furniture and equipment is a common administrative expense as it is associated with the non-sales-related costs of maintaining a retail business. Depreciation on the sales manager's motor vehicle would be more appropriately classified as a selling expense, while discount allowed and interest on bank overdraft would be considered financial expenses.

Which of These Should Be Classified as an Administrative Expense