Examples of classification of expenses by their nature are:
A) employee expenses and distribution expenses.
B) depreciation and marketing expenses.
C) borrowing costs and distribution expenses.
D) employee expenses and depreciation expenses.

Question

Quizplus · Accepted Answer

The classification of expenses by their nature refers to grouping expenses based on their function or purpose. Employee expenses and depreciation expenses are both examples of expenses that represent different functions. Employee expenses represent the cost of labor or workforce, while depreciation expenses refer to the reduction in the value of assets over time. Therefore, D is the best choice as it accurately categorizes expenses based on their nature or function.

Examples of Classification of Expenses by Their Nature Are