Operating costs include
A)interest costs.
B)income taxes.
C)only cost of goods sold.
D)all fixed and variable costs.
E)operating expenses and cost of goods sold.

Question

Quizplus · Accepted Answer

Operating costs typically include both cost of goods sold (direct costs associated with producing or providing a product/service) and operating expenses (indirect costs associated with running a company such as salaries, rent, utilities, and marketing expenses). Interest costs and income taxes are not considered operating costs. Only D is incorrect because it is too broad since not all costs are considered part of operating costs.

Operating Costs Include