What do tax and license expenses encompass?

• A. Insurance premiums
• B. Costs for maintenance and repairs
• C. Fees for plates, tags, and taxes
• D. Employee salaries related to vehicle management

Answer: (C)

Tax and license expenses specifically pertain to costs associated with the legal requirements for vehicle ownership and operation, which includes fees for plates, tags, and taxes. These expenses are directly related to regulatory compliance for vehicles used by a business, ensuring that all required taxes are paid and that vehicles are properly registered with the appropriate authorities.

This category distinctly focuses on the financial obligations a business has concerning government regulations, while the other options relate to different aspects of vehicle management. Insurance premiums, for instance, are costs related to risk management rather than licensing or taxes. Maintenance and repairs focus on the upkeep and functionality of the vehicle, separating them from tax obligations. Employee salaries associated with vehicle management fall under personnel costs, which are unrelated to the licensing and tax expenses. Thus, the correct choice highlights the specific financial responsibilities that arise from owning and operating a vehicle under government regulations.