Which is an example of an ongoing financial cost to a business?

• A. Salaries
• B. Office Furniture
• C. Investors, Networks, and Revenue
• D. None of the Above

Answer: (A)

The idea here is recurring operating expenses—the costs a business must pay regularly to run day to day. Salaries are a classic example because payroll is paid on a regular schedule (weekly, biweekly, monthly) and is part of the ongoing cost of keeping staff working and the business functioning. This expense shows up every period on the income statement as an operating expense and directly reduces profit.

Office furniture, by contrast, is typically a capital asset bought once and then expensed over time through depreciation. It represents an investment rather than a regular recurring cost, though occasional maintenance might create smaller ongoing costs. Investors, networks, and revenue are not costs at all: revenue is income, and investors/networks relate to funding or relationships rather than a recurring expense.

So salaries best illustrate an ongoing financial cost to the business.