What would be included in the selling and administrative expenses budget?

Question

Quizplus · Accepted Answer

Selling and administrative expenses refer to the costs incurred by a company in its normal business operations outside of production-related expenses. This would include expenses such as advertising, salaries and wages of employees not involved in production, office supplies, rent, utilities, and other administrative expenses. Variable costs like commissions, bonuses or other incentives also fall under selling and administrative expenses. Therefore, D is the best choice as it is the only option that falls under selling and administrative expenses. Options A, B, and C are all related to production expenses.

What Would Be Included in the Selling and Administrative Expenses