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Advertising and office supplies costs, not tied to direct selling, are called:
AOptional expenses
BOrdering expenses
COperating expenses
DOpening expenses
Answer & Solution
Correct answer: C. Operating expenses
1. They are the daily costs of running the business.
2. They split into selling and administrative groups.
3. They are operating expenses.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
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