What are Selling, General, and Administrative Expenses typically comprised of?

Selling, General, and Administrative Expenses (SG&A) are a crucial component of a company's income statement and represent the overhead costs related to selling products and managing the business that are not directly tied to producing goods. The correct choice highlights that SG&A typically includes operating expenses, along with depreciation and amortization of assets.

Operating expenses cover a wide range of costs that are necessary for running the daily operations of a business, such as salaries, rent, utilities, and marketing. Depreciation accounts for the cost of tangible fixed assets over their useful lives, reflecting the wear and tear on these assets, while amortization applies this concept to intangible assets. Together, these components provide a comprehensive understanding of the costs involved in selling products and managing the business, without including direct costs related to producing goods.

This context differentiates SG&A from other financial metrics found in the incorrect options. For instance, one option mentions cost of goods sold, which is specifically related to the production of goods and does not fall under SG&A. Other incorrect choices involve items like interest expenses, tax liabilities, and payments to suppliers, which do not capture the broader spectrum of selling, general, and administrative activities necessary for the business operation.