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.

Administrative Expense

Costs related to the general management and administration of a company, such as salaries of executive personnel, accounting departments, and front office.

Direct Labor Cost

The cost associated with employees who directly contribute to the production of goods, such as wages for factory workers.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period.