Which type of costs are considered non-operating expenses?

Non-operating expenses are costs that are not directly tied to the core business operations or regular activities of a company. These expenses usually arise from secondary activities, such as investment losses or interest payments, rather than from the primary operations such as producing goods or delivering services.

Choosing expense items not occurring in business operations correctly identifies non-operating expenses, as these costs do not relate to producing or selling a company's primary products or services. Instead, they are associated with activities outside the regular course of business. This includes costs incurred from activities like selling off assets or costs related to financing the business.

In contrast, direct production costs, employee wages, and supplier payments are all integral to the day-to-day operations of a business. Direct production costs are expenses tied directly to manufacturing products. Employee wages are part of the labor costs necessary for operational efficiency, while supplier payments are associated with purchasing inventory and services required for business functioning. These types of costs are classified as operating expenses since they are crucial for the operation and management of the core business activities.