Selling and administrative expenses include which of the following income statement items?
A)Salaries, insurance, interest.
B)Salaries, rent, advertising.
C)Rent, interest, cost of goods.
D)Advertising, research & development, amortization.

Question

Quizplus · Accepted Answer

Selling and administrative expenses typically include overhead costs such as salaries, rent, and advertising, all of which are included in choice B. Choice A includes insurance and interest, which may be separate line items on the income statement, but are not typically considered part of selling and administrative expenses. Choice C includes rent and interest, but also includes cost of goods, which is not part of selling and administrative expenses. Choice D includes advertising, but also includes research & development and amortization, which are not typically considered part of selling and administrative expenses.

Selling and Administrative Expenses Include Which of the Following Income