Certified Pennsylvania Evaluator Practice Exam

Which of the following is NOT a component of management expenses?

1. Utilities

2. Marketing costs

3. Salaries for staff

4. Repairs

The correct answer is: Marketing costs

Marketing costs are categorized separately from management expenses. Management expenses typically encompass costs necessary for the overall administration and operations of a business, including items like utilities, salaries for staff, and repairs. Utilities are essential for maintaining the workplace, and thus are considered part of management expenses. Salaries for staff directly relate to the management function, as these are the wages paid to employees responsible for overseeing and executing organizational tasks. Repairs are also included as they pertain to maintaining the infrastructure necessary for management operations. In contrast, marketing costs are focused on promoting products or services and generating sales, which typically falls outside the realm of management expenses. This delineation helps businesses allocate their budget correctly between administration and marketing activities.