Which of the following is an example of running costs?

• A. Rent
• B. Salaries
• C. Advertising
• D. Printing costs

Answer: (A)

Running costs are the ongoing expenses needed to keep a business operating day to day. They’re paid regularly and don’t create a lasting asset for the company. Rent is a clear example because it is a regular, predictable expense for the space the business uses, and it stays in place regardless of how much is produced or sold. It represents a steady overhead that you incur just to have a functioning facility.

Salaries are also a recurring expense, but they’re tied to labor and can be viewed as payroll costs that vary with staffing needs. Advertising and printing costs can be irregular, often tied to specific campaigns or orders, so they aren’t as consistently incurred as rent.