Which of the following is not an example of an operating expense?
A) Advertising
B) Taxes
C) Depreciation
D) Cost of goods sold

Question

Quizplus · Accepted Answer

Operating expenses are the costs associated with running a business's core operations on a daily basis. Depreciation is considered a non-cash operating expense, advertising is a selling expense, and taxes can be considered an operating expense depending on the context (like property taxes directly related to the business operation). However, the cost of goods sold (COGS) is not an operating expense; it is a direct cost associated with the production of the goods sold by a company.

Which of the Following Is Not an Example of an Operating