What type of account records costs incurred in operating a business?

An expense account is specifically designed to record costs incurred in operating a business. These accounts reflect the spending of resources that a business undertakes to generate revenue. This can include a wide variety of costs, such as salaries, utilities, rent, and supplies. Tracking expenses is crucial for understanding a company's profitability, as they are subtracted from revenue to determine net income.

In contrast, an asset account tracks resources owned by the business, such as cash, equipment, and inventory, that provide future economic benefits. Revenue accounts document the income generated from business operations, while equity accounts represent the owner's claims on the assets of the business after all liabilities have been settled, reflecting the ownership and retained earnings of the company. Thus, the expense account directly pertains to operational costs, making it the correct choice for this question.