Which of the following is considered a regular running cost for a company?

Prepare for the BTEC Enterprise Component 1 Test. Enhance your understanding with questions and answers, including expert hints and tips. Be thoroughly prepared for your exam!

Monthly rent payments are recognized as a regular running cost for a company because they represent an ongoing, fixed expense that a business incurs to maintain its operations. Rent is usually a contractual obligation that organizations pay consistently each month, making it a predictable and essential part of their budget. This cost is crucial for the company's daily functioning, as it provides the physical space necessary for operations.

In contrast, employee training expenses, research and development costs, and initial product launch costs tend to be more variable and project-based. Employee training may occur intermittently and is often tied to specific events or needs within the organization. Research and development costs can fluctuate based on the projects being pursued and are not incurred regularly but rather as part of strategic initiatives. Finally, initial product launch costs are one-time expenses associated with bringing a new product to market and do not recur as part of the day-to-day operational expenses.

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