Which of the following is considered an expense for an organization?

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Study for the ASCP Diplomate in Laboratory Management Exam. Prepare with flashcards and multiple-choice questions, each with hints and explanations. Enhance your readiness!

Salaries and wages are recognized as expenses for an organization because they represent the costs incurred to compensate employees for their work. These costs are essential for the operation of the business, as staff members are necessary to perform various functions, ranging from administrative tasks to specialized laboratory processes. When preparing financial statements, salaries and wages are recorded as operating expenses on the income statement, thus directly impacting the organization's profitability.

In contrast, gross revenue pertains to the total income generated by the sale of goods or services before any expenses are deducted. Similarly, investment income refers to earnings obtained from investments, which is considered revenue rather than an expense. Market share growth, on the other hand, is a measure of a company's competitiveness in its industry, reflecting the proportion of an industry or market that a company controls, but does not represent a financial outlay or an expense. Therefore, among the provided options, only salaries and wages are classified as expenses.

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