Recurring and Nonrecurring Costs
•Recurring Costs
•Costs referring to any expense that is known, anticipated, and occurs at regular intervals.
•Modeled as cash flows that occur at regular intervals.
• e.g. resurfacing a highway, annual operation and maintenance expenses
•Nonrecurring Costs
•One-of-a-kind expenses that occur at irregular intervals .
•Difficult to plan for or anticipate from a budgeting perspective, both in terms of timing and size.
• e.g. fire or theft losses, installing a new machine,