Sales cause which of the following expenses?

The correct answer reflects the direct relationship between sales activities and certain types of expenses that arise as a result. When a sale is made, two significant types of expenses are incurred: the cost of goods sold expense and sales commission expense.

The cost of goods sold (COGS) expense represents the direct costs associated with the production of the goods or services that a company sells. This includes the cost of materials, labor, and overhead incurred to produce the items sold to customers. Thus, an increase in sales directly correlates with an increase in COGS, as the company needs to produce or purchase more goods to meet customer demand.

Sales commission expense is another direct cost tied to sales activities. When sales personnel make sales, they typically receive a commission based on the volume or value of the sales generated. Therefore, as sales increase, so does the total amount paid out in commissions to incentivize and reward the sales team for their efforts.

In contrast, while marketing and advertising expenses help promote sales, they do not arise as a direct consequence of sales transactions. Similarly, administrative and operational expenses, as well as research and development expenses, are more indirect costs that support business functions but are not directly generated by the act of selling products or services.