Which of the following is an example of an operating expense?
A.
Inventory
B.
Raw materials
C.
Purchased pans
D.
Labor
The Answer Is:
D
This question includes an explanation.
Explanation:
Operating expenses refer to the costs incurred by an organization in its day-to-day operations. These expenses are necessary for the business to function and maintain its operations. Labor costs, including salaries, wages, and benefits for employees, fall under operating expenses. Labor is a critical component of organizational activities, and its associated costs are considered operating expenses2.