Which costs are considered personnel costs?

• A. Rent and Utilities
• B. Salaries and Benefits
• C. Equipment and Furniture
• D. Travel Expenses

Answer: (B)

Personnel costs are the expenses tied to employing people—the pay they receive and the benefits that come with the job. Salaries and benefits cover wages plus employer-provided offerings like health insurance, retirement contributions, and paid leave. Rent and utilities pay for the workspace, not the people. Equipment and furniture are assets used in operations, not ongoing compensation. Travel expenses relate to business trips and other activities, not the payroll itself. Because salaries and benefits directly reflect what you pay to personnel, they are the personnel costs.