- A. fixed expenditure
- B. capital expenditure
- C. annual expenditure
- D. recurrent expenditure ✓
Recurrent expenditure refers to the regular and ongoing expenses incurred by an individual, organization, or government for the day-to-day operations or maintenance of assets. This type of expenditure is typically recurring in nature and is necessary to sustain the normal functioning of an entity.
These expenses are necessary for the day-to-day operations and are often referred to as “operational expenses” or “periodic costs.”
Examples of recurrent expenditure include:
- Salaries and wages: Payments made to employees for their work during the current accounting period.
- Rent and utilities: Costs associated with maintaining office space, equipment, and services like electricity, water, and internet.
- Office supplies: Costs of consumables like paper, ink, and other stationery items required for daily operations.
- Maintenance and repairs: Expenses related to maintaining and repairing equipment, buildings, or infrastructure on a regular basis.
- Insurance premiums: Periodic payments made to insurance companies to protect against potential losses or liabilities.
- Professional fees: Payments made to external consultants, lawyers, or accountants for their services during the accounting period.
- Travel and entertainment: Expenses incurred while traveling for business purposes or hosting clients or partners during the accounting period.
