Drag the tiles to the correct boxes to complete the pairs. Match the components of an income statement with their description. COGS
gross profit
operating expenses
selling expenses

expenses that a business incurs to carry out its daily operations.
expenses incurred for manufacturing or obtaining the products and materials sold during a given period.
money spent on advertising, traveling, and promotions.
balance arrived at after deducting the expenses incurred on the goods sold from the revenue earned by selling the goods.

see below

Explanation:

1. COGS

Expenses incurred for manufacturing or obtaining the products and materials sold during a given period.

COGS are the direct expenses in the production process. They include labor, materials, and direct overheads.

2. Gross profit

Balance arrived at after deducting the expenses incurred on the goods sold from the revenue earned by selling the goods.

The revenues must exceed the expenses for a business to realize a gross profit. Otherwise, it will be a loss.

3. Operating expenses

Expenses that a business incurs to carry out its daily operations. They are the indirect cost of production. Examples include insurance, administrative, and security costs.

4. Selling expenses

Money spent on advertising, traveling, and promotions. These are the costs incurred in the selling process.

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