Which of the following includes marketing and selling expenses, general and administrative expenses, and depreciation expense?

The correct answer is operating expenses, which encompass all costs that are necessary to run a company's day-to-day operations but are not directly tied to the production of goods or services. This category includes marketing and selling expenses, which are incurred to promote and sell products; general and administrative expenses, which cover overhead costs such as salaries and office supplies; as well as depreciation expense, which accounts for the gradual reduction in value of tangible assets over time due to use and wear.

Understanding operating expenses is crucial as they play a significant role in determining a company's operating income. By subtracting operating expenses from total revenue, businesses can assess their operational efficiency and profitability. Recognizing these expenses helps in financial analysis and decision-making, as companies aim to control and manage costs while maximizing revenue.

In contrast, operating income reflects profit from operations after subtracting operating expenses from gross revenue but does not specifically categorize the expenses. Cost of goods sold pertains only to the direct costs of producing products, while gross profit margin measures the difference between sales and the costs of goods sold, thereby excluding operating expenses entirely. This distinction is important for comprehensive financial analysis and operational assessment.