Target Corporation$$s note from a recent annual report illustrates the primary items classified in each $($TGT$)$ major expense category: cost of sales $($COS$),$ or selling, general and administrative $($SG&A$).$ For each expense, indicate whether the item would be included in COS or SG&A$.$ Note: Target owns the distribution centers mentioned in several of the line items.

Type of Cost $($Target Corporation$)$ Classification

a$.$ Advertising expenses Answer $1$

SG&A

b$.$ Compensation and benefits costs for headquarters employees Answer $2$

SG&A

c$.$ Compensation and benefits costs for store employees Answer $3$

SG&A

d$.$ Compensation and benefits costs for distribution center employees Answer $4$

COS

e$.$ Distribution center costs Answer $5$

COS

f$.$ Freight expenses associated with moving merchandise from our vendors to our distribution centers and our retail stores Answer $6$

COS

g$.$ Freight expenses associated with moving merchandise among our distribution and retail stores Answer $7$

COS

h$.$ Import costs for foreign$-$sourced inventory Answer $8$

COS

i$.$ Inventory shrink and theft Answer $9$

COS

j$.$ Litigation and defense costs and related insurance recovery Answer $10$

SG&A

k$.$ Markdowns on slow$-$moving inventory Answer $11$

COS

l$.$ Occupancy and operating costs for headquarters facilities Answer $12$

SG&A

m$.$ Occupancy and operating costs of retail locations Answer $13$

SG&A

n$.$ Outbound shipping and handling expenses associated with sales to our guests Answer $14$

COS

o$.$ Payment term cash discounts to our vendors Answer $15$

COS

p$.$ Pre$-$opening costs of stores and other facilities Answer $16$

SG&A

q$.$ U$.$S$.$ credit cards servicing expenses Answer $17$

SG&A

r$.$ Vendor reimbursement of specific, incremental, and identifiable advertising costs Answer $18$

SG&A