Which of the following is an example of an intangible cost?

Intangible costs refer to non-physical expenses that cannot be easily quantified but still have a significant impact on an organization's performance or well-being. Low employee morale affecting performance exemplifies this concept well. When employees are not motivated or satisfied, it can lead to decreased productivity, lower quality of work, and potentially higher turnover rates, which indirectly cost the organization in terms of lost efficiency and increased recruitment efforts.

While machinery depreciation, legal fees, and training expenses are all costs incurred by a company, these can be directly quantified and associated with specific financial figures. In contrast, the effects of low employee morale are less tangible and can vary significantly from one team or individual to another, making it a quintessential example of an intangible cost that impacts an organization beyond just immediate financial metrics.