Question

two catagories of expenses for merchandising companies are?

A) sales abd cost of goods sold

b) cost of goods sold and operating expenses

c) operating expenses and financing expenses

d) cost of goods sold and financing expenses

Answer 1

Solution. The correct answer is option b

Explanation: Firstly, merchandising companies are one which deals in resale of goods at higher profit margin. Two categories of expenses for merchandising companies are one as for dealing with tangible goods and costs involved in day to day functioning and making them to reach the end consumer as of operating and cost of goods sold involved so option b holds true for the given question. Other options hold false as financing expenses form a part of companies investing in assets or capital to produce goods.