What is included under occupancy costs in a commercial setting?

Occupancy costs in a commercial setting primarily refer to the expenses directly associated with the physical space occupied by a business. This includes the rent paid for leasing office space, which is typically one of the largest fixed costs for businesses, as well as utilities such as electricity, water, gas, and heating or cooling costs that are necessary for the functioning of that space.

Understanding this concept is crucial for effective financial management within a company, as it assists in calculating the overall cost of maintaining a physical presence and helps in budgeting and forecasting. The correct answer highlights these essential components, emphasizing that they directly relate to the operational space used by a business.

In contrast, the other options pertain to different categories of costs. Insurance premiums for office supplies do not fit under occupancy costs, as they relate more to risk management and protection of assets. Salaries for administrative staff are labor costs and fall into a different expense category related to personnel. Similarly, marketing and advertising expenses are part of the sales and promotional costs, which further delineates them from occupancy costs. Thus, the focus on rent and utilities in the correct answer accurately reflects the defined parameters of occupancy costs in a commercial environment.