A cost resulting from the ongoing evolution and use of a system best defines a(n):
A) recurring cost.
B) one-time cost.
C) incremental cost.
D) frequent cost.
E) variable cost.

Question

Quizplus · Accepted Answer

A recurring cost is a cost that occurs on an ongoing basis, such as maintenance, updates, and training in the case of a system. The ongoing evolution and use of a system would result in recurring costs over time. One-time costs are those that occur only once, such as the initial purchase or implementation of the system. Incremental costs refer to the additional costs incurred for each unit of output or usage, which may not apply to a system. Frequent cost and variable cost are not appropriate terms to describe the situation.

A Cost Resulting from the Ongoing Evolution and Use of a System