Asked by Nazwa Al-Sayeed on May 09, 2024

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Operating expenses are classified into two categories: selling expenses and cost of goods sold.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs of goods sold, such as rent, salaries, and utilities.

  • Differentiate between various expense categories in accounting.
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CB
Citlaly BolanosMay 15, 2024
Final Answer :
False
Explanation :
Operating expenses are classified into two categories: selling expenses and general & administrative expenses. Cost of goods sold is not an operating expense but a direct cost related to the production of goods sold by a company.