Certified Facility Manager (CFM) Practice Exam 2025 – All-in-One Resource for Exam Success!

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Which class of expenses do telecommunication truck line charges fall under?

Capital expenditures (CapEx)

Operational expenses

Telecommunication truck line charges are classified under operational expenses. These expenses are incurred in the day-to-day functioning of a business and include costs related to ongoing operations, such as communication services that are essential for business activities.

Operational expenses encompass various costs that support the essential functions of the organization, such as utilities, rent, and telecommunications, which are incurred regularly. Unlike capital expenditures, which involve large investments in physical assets expected to provide value over a longer period, operational expenses refer to the routine spending that keeps the organization operational on a day-to-day basis.

Understanding this classification is critical, as it impacts budgeting, financial reporting, and expense management within a facility management context. Properly categorizing telecom charges helps in assessing the ongoing operational costs and aids in efficient financial planning.

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Maintenance costs

Administrative costs

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