The salary paid to the president of a company would be classified on the income statement as a(n):
A) administrative expense.
B) direct labor cost.
C) manufacturing overhead cost.
D) selling expense.

Question

Quizplus · Accepted Answer

The salary paid to the president of a company would be classified as an administrative expense, as it is a cost incurred in the general administration or management of the company. It is not directly related to the manufacturing or selling of products, nor is it considered part of direct labor costs.

The Salary Paid to the President of a Company Would