The operating expense section of an income statement for a wholesaler would not include:

a. freight-out. b. utilities expense. c. cost of goods sold. (answer) d. insurance expense. e. office expense.

answer-> C)cost of goods sold

Hi, can any help me with this question? I know the answer is C, but I am confused because I thought freight-out was not of the operating expense section of the income statement? I thought that only included expenses.