RECURRING COST Meaning and
Definition
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Recurring cost refers to an expense that repeats at regular intervals for a given period. It represents an ongoing financial obligation that occurs repeatedly and is usually necessary for the operation, maintenance, or continuation of a business, organization, or individual's day-to-day activities. Recurring costs are typically incurred over an extended duration and are expected to be paid regularly or periodically, such as monthly, quarterly, or annually.
These costs can include various expenditures that recur systematically, such as rent, utility bills, insurance premiums, subscription fees, salaries, wages, or any other regular payments associated with the functioning of an entity. Unlike one-time or non-recurring expenses, recurring costs are predictable and can be anticipated in advance. They are crucial for budgeting purposes as they require ongoing allocation of funds and can significantly impact financial planning.
Understanding recurring costs enables individuals or businesses to carefully plan and manage their finances, ensuring that they have appropriate funds available to cover these regular expenses. Tracking and analyzing recurring costs is also important for evaluating the financial feasibility, sustainability, and profitability of an enterprise, as it gives insight into the ongoing financial commitments and obligations.
In summary, recurring costs are expenses that occur repetitively within a specific timeframe, representing ongoing financial obligations essential for the operation and maintenance of an entity, and are typically predictable and regularly paid.
Common Misspellings for RECURRING COST
- eecurring cost
- decurring cost
- fecurring cost
- tecurring cost
- 5ecurring cost
- 4ecurring cost
- rwcurring cost
- rscurring cost
- rdcurring cost
- rrcurring cost
- r4curring cost
- r3curring cost
- rexurring cost
- revurring cost
- refurring cost
- redurring cost
- recyrring cost
- rechrring cost
- recjrring cost
- recirring cost
Etymology of RECURRING COST
The word "recurring" comes from the Latin word "recursum", which is the past participle of the verb "recurre", meaning "to run back, return, or happen again". It is derived from the prefix "re-" meaning "back" and "currere" meaning "to run".
The word "cost" comes from the Latin word "constare", which means "to stand together or be settled". It eventually evolved into the Old French word "coste" and then into the Middle English word "cost" with the same meaning.
When combined, "recurring cost" refers to a cost that happens repeatedly or that occurs again and again.
Similar spelling word for RECURRING COST
