ENTREPRENEURSHIP

Detailed explanation-1: -Operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development. By contrast, a non-operating expense is an expense incurred by a business that is unrelated to the business’s core operations.

Detailed explanation-2: -Presentation of Sales Commissions Sales commissions paid out are classified as a selling expense, and so are reported on the income statement within the operating expenses section. This means that commissions are situated after the cost of goods sold.

Detailed explanation-3: -Selling, general, and administrative expense (SG&A) is reported on the income statement as the sum of all direct and indirect selling expenses and all general and administrative expenses (G&A) of a company.