This term encompasses ongoing costs of running a business, such as salaries and marketing.

This term encompasses ongoing costs of running a business, such as salaries and marketing.

• A. Non-operating Income
• B. Assets
• C. COGS
• D. Operating Expenses

Answer: (D)

Ongoing costs of running a business are recorded as operating expenses. These are the day-to-day costs that keep the business operating and generating revenue, like salaries, marketing, rent, utilities, and office supplies. They appear on the income statement and reduce operating profit for the period. They differ from cost of goods sold, which tracks the direct costs tied to making the products sold, and from non-operating income, which comes from activities outside normal operations (like interest or gains from asset sales). Assets, meanwhile, are resources owned by the company that have future economic benefits, not costs. So the term that covers salaries and marketing—the everyday costs of running the business—is operating expenses.

Ongoing costs of running a business are recorded as operating expenses. These are the day-to-day costs that keep the business operating and generating revenue, like salaries, marketing, rent, utilities, and office supplies. They appear on the income statement and reduce operating profit for the period. They differ from cost of goods sold, which tracks the direct costs tied to making the products sold, and from non-operating income, which comes from activities outside normal operations (like interest or gains from asset sales). Assets, meanwhile, are resources owned by the company that have future economic benefits, not costs. So the term that covers salaries and marketing—the everyday costs of running the business—is operating expenses.