Which of the following is a gross cost/direct cost related to renting?

When considering direct costs related to renting, depreciation is categorized as a gross cost because it directly relates to the value of the asset being rented, such as a property or equipment. In the case of real estate, for example, depreciation represents the gradual decrease in value of the property over time, which is a cost incurred directly due to the ownership of that asset.

Depreciation aligns with the concept of gross costs in that it reflects the financial burden associated with the rental property itself. It’s a systematic way of allocating the cost of the asset over its useful life, directly linked to the renting activity.

The other options, while they may all be costs associated with a business, do not fit the definition of direct costs related to renting in the same way. Advertising costs, employee salaries, and utility expenses are more indirect or operational expenses that can be associated with overall business functioning rather than the specific act of renting or owning rented properties.