Human Resources Certification Institute (HRCI) Practice Exam

Which of the following is an example of a business operating expense?

1. Salaries

2. Rent

3. Software licenses

4. All of the above

The correct answer is: All of the above

The selection of all of the above as an example of a business operating expense is appropriate because each of these options represents a routine cost necessary for the general operation of a business. Salaries are essential expenses since they cover the compensation for employees who contribute to the company's operations. Paying staff is fundamental to keeping the business running and ensuring productivity. Rent is another operating expense that businesses incur for using a physical space. This cost is relevant for any organization that leases a property for its operations, making it a critical expense in maintaining a business presence. Software licenses represent another type of operating expense as they are necessary for obtaining the rights to use software applications that support various business functions. These licenses are often required to ensure compliance with legal and contractual obligations. Each of these expenses—salaries, rent, and software licenses—plays a vital role in the daily functioning and success of a business, which is why they collectively illustrate what constitutes operating expenses.