In corporate accounting, which category typically follows personnel as a major expense?

Master the BOMI Facilities Management Fundamentals Exam. Study with flashcards and multiple choice questions, each offering hints and explanations. Prepare effectively and excel in your exam!

Multiple Choice

In corporate accounting, which category typically follows personnel as a major expense?

Explanation:
After personnel, the next major expense in corporate accounting is typically facilities. The reason is that payroll usually represents the largest and most stable cost for many organizations, while facilities cover the ongoing costs of the physical space where work happens. This includes rent or mortgage payments, utilities, maintenance, property taxes, and depreciation on owned buildings or equipment. These facility-related costs are substantial and recur regularly, often making them the second-largest category. Travel, advertising, and insurance can be significant, but they tend to be more variable or smaller on average, depending on the company and industry.

After personnel, the next major expense in corporate accounting is typically facilities. The reason is that payroll usually represents the largest and most stable cost for many organizations, while facilities cover the ongoing costs of the physical space where work happens. This includes rent or mortgage payments, utilities, maintenance, property taxes, and depreciation on owned buildings or equipment. These facility-related costs are substantial and recur regularly, often making them the second-largest category. Travel, advertising, and insurance can be significant, but they tend to be more variable or smaller on average, depending on the company and industry.

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