Which administrative expense was the highest in 2025?

• A. Marketing & advertising
• B. Premises & IT
• C. Wages & salaries
• D. General expenses

Answer: (C)

Administrative expenses are costs tied to running the business that aren’t directly linked to producing goods or selling them. Payroll for administrative and support staff often forms the largest portion of this category because it covers salaries for managers, HR, finance, IT support, and other essential admin roles that must be maintained continuously. In 2025, wages and salaries stand out as the biggest line item among administrative costs, reflecting the substantial ongoing expense of keeping operations, compliance, and administration functioning.

Other options are usually categorized differently: marketing and advertising is typically shown under selling or marketing expenses, not administrative; premises and IT cover facilities, utilities, and technology infrastructure and, while significant, are generally smaller than major payroll costs; general expenses include a variety of smaller items and tend to be lower than the primary payroll. So, wages and salaries is the highest administrative expense.