Which of the following is NOT normally classified as a selling expense in accounting?

Introduction / Context:
In financial accounting, expenses are often grouped into selling expenses and general and administrative expenses. This classification helps managers and analysts understand how much is being spent on marketing and sales activities versus overall administration. Knowing which items fall into each category is a common exam and interview topic for commerce, accounting and marketing students.

Given Data / Assumptions:

• Selling expenses are costs directly related to promoting and selling products and services and delivering them to customers.
• Administrative expenses are costs related to overall management and support functions of the business.
• The listed items include freight-out, advertising, store supplies, office salaries and sales commissions.
• We need to identify which one is not a selling expense.

Concept / Approach:
Selling expenses typically include costs such as advertising, sales salaries and commissions, sales promotion, delivery expenses (freight-out) and store-related costs. These expenses are incurred in the process of generating sales and serving customers. Office salaries for staff who handle general administration, accounting, human resources or executive management are not directly tied to selling activities and are therefore classified as administrative expenses. The correct answer will be the item clearly associated with general administration rather than sales.

Step-by-Step Solution:
Step 1: Consider freight-out. This is the cost of delivering goods to customers and is directly related to completing a sale, so it is a selling expense. Step 2: Examine advertising expense. It promotes products and attracts customers, so it is also a selling expense. Step 3: Assess store supplies used in the sales area. These help operate sales counters or retail space, so they are part of selling expenses. Step 4: Review office salaries expense for administrative staff. These employees handle general management tasks, not specific selling activities. Step 5: Recognise that sales commissions are paid based on sales performance, so they are clearly selling expenses, leaving office salaries as the non-selling item.

Verification / Alternative check:
When preparing an income statement by function, a company might list selling and distribution expenses separately from general and administrative expenses. Under selling expenses, it would place advertising, sales staff salaries and commissions, freight-out and store related costs. Under administrative expenses, it would include office salaries for management and administrative staff, rent for the head office and professional fees for auditors. This standard classification confirms that office salaries belong to administrative expenses, not selling expenses, matching option D.

Why Other Options Are Wrong:
Option A, freight-out, relates to delivering goods to customers, which is part of selling and distribution. Option B, advertising expense, directly supports marketing and sales. Option C, store supplies, are consumed in the selling area and support sales operations. Option E, sales commissions, are directly tied to sales performance. All these are typical selling expenses. Only option D, office salaries expense for general administrative staff, is not a selling expense but an administrative one.

Common Pitfalls:
Students sometimes assume that any salary is a selling expense, but classification depends on the function of the employee. Another pitfall is ignoring the distinction between head office functions and field sales functions. In exams, carefully read the description of each cost and ask whether it is incurred to sell and distribute products, or to manage and support the overall business. In interviews, explaining this classification clearly shows understanding of basic financial reporting concepts that impact marketing budget analysis.

Final Answer:
Office salaries expense for general administrative staff is not normally classified as a selling expense.