Final answer:
Selling and admin costs are recognized as operating expenses in business accounting. These costs are incurred in the day-to-day operations of a company and are recognized on an ongoing basis.
Step-by-step explanation:
Selling and admin costs are usually recognized as operating expenses in business accounting. These costs are incurred in the day-to-day operations of a company and include expenses such as salaries, rent, utilities, office supplies, and advertising.
For example, a manufacturing company would consider the cost of raw materials used in the production process as part of its operating expenses.
These costs are recognized in the accounting records on an ongoing basis, typically on a monthly or quarterly basis, to reflect the ongoing costs of running the business.