Which of the following is a component of occupancy costs?

Occupancy costs are expenses related directly to the physical space occupied by a firm, including rent, utilities, maintenance, and improvements to the space. Leasehold improvement expenses specifically refer to enhancements made to leased spaces to make them more suitable for a tenant's needs, such as installing new lighting or renovating office layouts. These costs are a fundamental component of occupancy expenses because they directly impact how efficiently and effectively a firm can operate in its leased space.

In contrast, client entertainment expenses relate to costs incurred to engage with clients and are often categorized as operating expenses rather than occupancy costs. Employee training costs focus on developing staff skills and knowledge, which is essential for overall organizational growth but does not pertain to the physical space occupied by the firm. Software subscription fees are an operational expense associated with technology and resources to support the business but are also not tied to occupancy costs. Thus, leasehold improvement expenses are the most relevant choice within the context of occupancy costs.