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    Thread: What is recurrent expenditure?

    1. #11
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      Recurrent expenditures are ongoing expenditure of an organization, such as salaries and travelling expenses. Bills that would to be paid over and over again, it doesn't end. They are expenditure on goods and services, which does not result in the creation or acquisition of fixed assets (new or second-hand).†It consists mainly of expenditure†on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation). When fees charged for goods and services are offset against recurrent expenditure, the result equates to final consumption expenditure.


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      Is refer to as happening time after time as which the amount expended and as a sum of money paid in exchange for goods and services to achieve or perform by running of commercial trade and that does not positive or favourable outcome in the exists or thing acquired or gained of asset or property which cannot easily be converted into cash such as land, buildings and machinery new or not new. It made up of payment on an amount of money paid to a worker for a specified quantity of work, usually calculated on an hourly basis and expressed in an amount of money per hour, fixed amount of money paid on monthly or annual basis and to provide or make a supplement to purchases of goods and services and the amount consumed of fixed capital which is the measurement of the unplanned, extraordinary decline in value of assets. All sum of money paid in exchange for goods or services apart from for an asset in the sense of accounting, but also including financial assets such as stocks or bonds, including on goods and services, salary and wage and a person, firm or other entity which pays for or hires the services of another person as an amount of money given toward something interested in any particular business payments, financial support or assistance such as a grant.


    3. #13
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      Recurrent expenditure by definition means the cost of incurred expenses in the accounting year, in a company or an organization recurrent expenditure are a means of gaging the different between the revenue and the money spent especially on the fixed asset such as the building, machineries, production equipment current repairing, fixing, and maintenance. These are the recurrent expenditure. The money spent on this asset is used merely to get assets back to their previous condition. No improvement is required for the recurrent expenditure. It means the expenditure are quick and temporary and it's different from capital expenditure.


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      Recurrent expenditure on goods and services is expenditure, which does not result in the creation or acquisition of fixed assets ( new or second-hand)
      It consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation).
      When fees charged for goods and services are offset against recurrent expenditure, the result squares to final consumption expenditure in the Australian Bureau of statistics national accounts framework.

      Includees:
      . Operating expenses
      . Tenancy manager revenue and expense components.


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      Recurrent expenditure as the name implies refers to expenditures or expenses that a person or an organization incurs every now and then. These expenditures are not channeled into the creation of more wealth neither are they used for acquisition of wealth but they are used to keep a business or organization in operation. Recurrent expenditures also covers the maintenance aspect of an organization's operation, by servicing equipment used in production or cleaning work space, money is spent but these money spent are not spent in other to create more wealth. This type of spendings are recorded as recurrent expenditures. Payments of salaries to workers also fall under this expenditure, even though this expenditure are not made to create other wealth, they are very important as they play a big role in the day to day running of a business or organization.


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