Two categories of expenses in merchandising companies are
A) cost of goods sold and financing expenses.
B) operating expenses and financing expenses.
C) cost of goods sold and operating expenses.
D) sales and cost of goods sold.

Question

Quizplus · Accepted Answer

Merchandising companies primarily have two categories of expenses: cost of goods sold (COGS), which is the cost to purchase or manufacture the products they sell, and operating expenses, which are the costs associated with running the business that are not directly tied to the production of goods.

Two Categories of Expenses in Merchandising Companies Are