Question

Whuch is an operating item??
interest paid, salary paid, dividend received & share capital issued

Answer 1

Salary paid is an operating item.

Answer 2

Salary paid is an operating item

Explanation:

The day-to-day expenses namely R&D, administration or sales as opposed to cost, production or pricing are operating expenses (operating items).

Salary paid is the operating item because after deducting salary, we can evaluate the amount of revenue turned into profit as salaries or wages will be paid to the employees from the revenue earned from that financial or accounting year.

Operating expenses include the following,

• salary and wages
• accounting expenses
• maintenance and repairs
• office expenses
• advertising
• supplies
• attorney fees and legal fees
• utilities, such as telephone
• property management
• insurance
• travel and vehicle expenses
• property taxes
• leasing commissions

$\text { Operating cost }=\text { cost of goods sold }+\text { Operating Expenses. }$

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