Question

interest paid by the producer is​

Answer 1

Answer:

a non- operating expense.......

bcs it has no direct relation wid sales...

hope it helps

Answer 2

In Microeconomics or Production Economics,the interest payment made by the producers or manufacturers are usually considered as a Factor Payment.

Explanation:

In Microeconomics or Production Economics,factor payments basically constitute the income or revenue earned by the providers of the factors or inputs of production such as land,labor,capital or entrepreneurship.In this context,the capital refers to the physical inputs or factors of production like machinery,equipment,physical tools,hammers,nut and bolts etc.When any firm or business organisation hires or rents any of the capital or physical inputs for production purposes,it has to pay an interest payment to the owners of the capital or physical inputs.This interest payment on capital or physical inputs is also called rental rate of capital in Microeconomics or Production Economics.This rental rate of capital or interest payment on capital inputs are parts of the factor payment paid by the producers or manufacturers to the owners of the factors or inputs of production.