Which category includes expenses for benefits like health insurance or retirement plans?

The inclusion of expenses for benefits like health insurance or retirement plans falls under payroll costs. Payroll costs encompass not just the salaries and wages paid to employees but also the various employee benefits associated with employment. These benefits are a significant component of the total compensation package and can represent a substantial financial commitment for an organization.

Operational expenses typically include the day-to-day costs required to run the business, such as rent, utilities, and office supplies, but do not specifically account for employee benefits. Capital expenditures relate to the funds used by a company to acquire, upgrade, or maintain physical assets such as property, buildings, or equipment. These are generally long-term investments and do not cover ongoing benefit expenses. Administrative overhead refers to the expenses that support the overall operation of a business but are not directly tied to any specific department or function, such as office management or human resource functions, which again excludes specific employee benefit costs.

Thus, payroll costs is the correct category for benefits like health insurance or retirement plans, as it directly represents the financial resources allocated to employee compensation and related benefits.