INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Operating
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Fixed
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Varible
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Liability
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Detailed explanation-1: -Operating costs include direct costs of goods sold (COGS) and other operating expenses-often called selling, general, and administrative (SG&A)-which include rent, payroll, and other overhead costs, as well as raw materials and maintenance expenses.
Detailed explanation-2: -The running costs of a business are the amount of money that is regularly spent on things such as salaries, heating, lighting, and rent.
Detailed explanation-3: -Yes, wages are operating expenses. Any administrative expense, whether it is a full-time salary or an hourly wage, is part of the operating expense of a business. The costs of hiring labor, on the other hand, are not considered operating expenses. Instead, they’re calculated as the cost of goods sold.