Question

Which of the following would not appear in the operating expense budget?

A. Sales commissions.
B. Delivery expense.
C. Advertising.
D. Depreciation on the production equipment.

Answer 1

Depreciation on the production equipment would not appear in the operating expense budget.

Step-by-step explanation:

In an operating expense budget, the costs that are associated with the day-to-day operations of a business are typically included. These costs may include items such as sales commissions, delivery expenses, and advertising. However, depreciation on the production equipment would not appear in the operating expense budget. Depreciation expense is typically classified as a non-operating expense since it relates to the wear and tear of long-term assets and is recorded separately on the income statement.