What are non-operating revenues and expenses?

Non-operating revenues and expenses are defined as those that do not arise from the primary activities or core business operations of a company. These items are typically generated from other activities, such as investments, sales of assets, or other ancillary sources. For instance, if a company earns interest on its bank deposits or gains from the sale of a piece of equipment, these would be categorized as non-operating because they are not functions of the company's main business operations, which might be selling products or providing services.

This definition highlights the distinction between core business functions and financial activities that are secondary to those functions. Understanding this distinction is crucial for accounting purposes, as it helps analysts and stakeholders assess the efficiency and profitability of the company’s main activities without the influence of peripheral factors.

In this context, the other options describe aspects that either pertain to the primary operations or do not accurately capture the essence of non-operating revenues and expenses. For instance, mentioning revenues and expenses related to primary operations focuses on core revenue generation, while terms like operating expenses fluctuating with production volume are specific to operational costs and variations that do not pertain to non-operating classifications.