Which of the following is an operating expense for Hollister?
A)cost of the merchandise to be paid to the manufacturers
B)shipping expenses from the manufacturer to the distribution center
C)customer returns
D)magazine advertisements
E)employee discounts

Question

Quizplus · Accepted Answer

Costs of the merchandise and shipping costs from the manufacturer to the retailer is included in the cost of goods sold and are not operating expenses.Employee discounts and customer returns are included in net sales and are not operating expenses.Advertising costs are operating expenses.

Which of the Following Is an Operating Expense for Hollister