Recently, you recognized the need for help and hired two new employees to count and sort inventory in your warehouse facility. This is an example of what type of costs?

The chosen answer refers to "human capital," which encompasses the skills, knowledge, and experience possessed by individuals that contribute to the productivity and efficiency of a business. In this scenario, hiring employees to count and sort inventory highlights the investment in human resources to improve operational processes and management of inventory. By employing personnel skilled in these tasks, the business enhances its ability to maintain accurate inventory levels, leading to more effective overall operations.

Human capital is a critical aspect in small businesses since it directly affects performance, innovation, and competitiveness in the marketplace. Investing in human capital, which in this case involves hiring and training employees, is essential for growth and can lead to a more organized and efficient warehouse.

Other options, while relevant in different contexts, do not accurately describe the nature of costs associated with hiring employees specifically for inventory management tasks. Facility costs would relate to physical spaces and associated expenses, service level costs pertain to the quality of service provided to customers, and management costs are linked to overarching organizational structure and leadership expenditures. Each of these options addresses different dimensions of business expenditures but does not specifically capture the essence of the investment made in hiring new workers.