Which of the following is considered a non-operating expense?

Non-operating expenses are those costs that are not directly related to the core business activities of a company. They typically include expenses tied to financing and investing activities rather than to operational activities such as production, sales, and administrative functions.

Interest expenses on debts qualify as non-operating expenses since they arise from financing activities rather than from the principal operations of the business. This cost reflects the company's obligations to lenders and is incurred regardless of the company's performance in its primary line of business. Understanding this distinction is crucial for analyzing a company's operating performance and its overall financial health.

Other expenses listed, such as utilities, insurance, and labor costs, are part of the normal operational expenses necessary for running the business. Utilities are costs associated with utilities consumed in operations, insurance protects against risk related to operational activities, and labor costs reflect payments made to employees for their work directly related to the company's core business functions. Therefore, they are classified as operating expenses rather than non-operating ones.