Question

Hanifin Company is not purchasing merchandise. Hanifin has sold merchandise to a customer and paid the shipping costs. When shipping costs are paid t deliver merchandise to a customer, they are an operating cost called "delivery expense."

Answer 1

The subject of this question is Business, specifically operating costs in a business context, with a focus on the delivery expense when shipping merchandise to customers.

Step-by-step explanation:

In this question, the subject is Business. The question specifically mentions Hanifin Company, which implies a business context. The concept being discussed is about operating costs in a business, specifically the delivery expense incurred when shipping merchandise to a customer.

In a business, there are various costs and expenses associated with operations, such as purchasing merchandise and delivering it to customers. These costs are classified as operating expenses because they are directly related to the day-to-day activities of the business.

One such operating cost is the delivery expense, which includes the shipping costs paid to deliver merchandise to customers. By understanding and tracking these operating costs, businesses can assess their overall profitability and make informed decisions regarding pricing, supply chain management, and expansion opportunities.