What is the next largest operating expense for a typical corporation after employee salaries?

The correct answer is A. information technology and technology purchases. After employee salaries, information technology and technology purchases consistently rank as the second-largest operating expense for most corporations, as modern businesses depend heavily on hardware, software infrastructure, cloud services, and ongoing tech investments to func

Cisco Meraki Cloud Architecture and Management

Question

Options

Ainformation technology and technology purchases
Bnetwork administration costs
Ccorporate real estate costs
Dsoftware licensing costs

How the community answered

(23 responses)

A
96% (22)
C
4% (1)

Explanation

After employee salaries, information technology and technology purchases consistently rank as the second-largest operating expense for most corporations, as modern businesses depend heavily on hardware, software infrastructure, cloud services, and ongoing tech investments to function at scale. Network administration (B) and software licensing (D) are both subcomponents within the broader IT spending category rather than separate top-tier expense lines - they roll up into the IT budget. Corporate real estate (C) is often cited as a major expense, but across industries IT spending has grown to outpace real estate costs, particularly as remote work has reduced physical footprint while digital infrastructure demands have soared.

Memory tip: Think of the modern business pyramid - people first (salaries), then the tools those people need (IT), then the space they occupy (real estate). Technology now comes before the building.

Topics

#Operating Expenses#IT Budget Allocation#Enterprise Cost Management#Business Context

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