Which of the following is not a common type of operating expense?

Disable ads (and more) with a membership for a one time $4.99 payment

Study for the Texas Aandamp;M University (TAMU) ACCT229 Exam. Get exam-ready with flashcards, detailed explanations, and multiple choice questions. Enhance your understanding and boost your confidence!

Dividends are not considered an operating expense because they represent a distribution of profits to shareholders rather than an expense incurred in the ordinary course of business operations. Operating expenses typically include costs that a company incurs to run its day-to-day operations, such as rent and wages. These expenses are essential for maintaining business activities.

In contrast, cost of goods sold reflects the direct costs attributable to the production of goods sold by a company, making it a key expense associated with generating revenue rather than an operating expense like rent or wages. Operating expenses involve costs necessary to support the overall operation, while dividends are a financial decision made after profits have been earned and do not relate to operational activities.