Object class codes are used to categorize expenditures into what kinds?

• A. They categorize procurement into spending categories such as by region
• B. They categorize expenditures into categories such as personnel and supplies
• C. They set the price controls for goods
• D. They determine tax rates

Answer: (B)

Object class codes classify expenditures by the type of cost being incurred. They group spending into categories that reflect the nature of the expense, such as personnel costs (salaries, wages, benefits) and operating expenses (supplies, materials, travel, services). This helps with budgeting, tracking, and comparing how funds are used across time or units.

Other options don’t fit because object class codes aren’t about where procurement happens (region-based categories), nor do they set price controls or determine tax rates. Those areas are governed by policy, regulation, or fiscal measures, not by how expenditures are coded by object type.