Question

Examples of recurring costs include:

a.Software acquisition.

b.Data conversion.

c.Personnel costs.

d.Systems design

Answer 1

Correct answer—(C) Personnel cost

A recurring cost is a cost that is incurred throughout the life of business or a project. In other words recurring cost are incurred continuously and not in lump-sum.

Say we purchase of a machine . We pay for machine when machine is purchased so purchase cost of machine is not a recurring cost but oiling of machine every month is a recurring cost.

In the given question , Software acquisition , system designs and data conversation are not recurring cost but personnel cost is.

Personnel cost is paid and accrued every month, week or 2 weeks whatever the case maybe.