What is the focus of Administrative Expenses?

The focus of Administrative Expenses is indeed on general operational costs and office management. Administrative expenses are the costs associated with the general overhead necessary to run a business that are not directly tied to the production of goods or services. This can include salaries of administrative personnel, office supplies, utilities for office spaces, and other costs that support the company's overall operations. These expenses are crucial for maintaining the infrastructure and administrative functions that allow a business to operate efficiently and effectively.

In contrast, the other options relate to different aspects of business costs. Costs of sales and distribution focus on expenses that directly contribute to getting products to consumers. Outlays for marketing and brand promotion are specifically related to activities aimed at increasing product awareness and sales, while direct costs of production refer to expenses directly tied to manufacturing a product. Understanding the specific focus of administrative expenses helps in distinguishing between various types of costs within an organization's financial statements.