Which of the following represents an expense related to staff compensation?

Explore NCEA Level 1 Accounting Exam preparation. Study with quizzes and multiple choice questions including hints and detailed explanations. Boost your confidence for the exam!

Staff compensation refers to the costs associated with paying employees for their work, which can include salaries, wages, bonuses, and other benefits. The choice that best represents an expense related to staff compensation is Sales Salaries, as it directly pertains to payments made to staff who are involved in selling products or services.

In the context of accounting, expenses related to staff compensation are critical because they impact the overall profitability of a business. Sales salaries specifically target individuals whose roles contribute to generating revenue, making this expense significant for business operations.

Other choices, while they represent various types of expenses, do not fall under the category of direct compensation for staff. Freight Out is related to the costs incurred for shipping products to customers, Rent pertains to the costs of leasing space, and Advertising is focused on promoting products or services. None of these options specifically address expenses tied to employee compensation like Sales Salaries does.

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