Examples of Recurring Costs Include

question 31

Multiple Choice

Examples of recurring costs include

• A)software acquisition
• B)data conversion
• C)personnel costs
• D)systems design

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Definitions:

Permanent Working Capital

The minimum amount of investment in current assets that a company needs to sustain its business operations.

Short-Term Debt

Describes obligations and loans that are due to be paid back within a year.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and efficiency in managing its operational needs.

Capital Commitment

The amount of capital a company is obligated to spend over a period, typically for investment in long-term assets or projects.