Question

Which of these is/are non-recurring expenses?

• A. Godown rent
• B. Transit insurance and freight
• C. Sales promotion expenses
• D. All of these

Answer 1

Answer: (B)

Transit insurance and freight

Costs incurred by a business in the process of earning revenue are known as expenses. Generally, expenses are measured by the cost of assets consumed or services used during an accounting period. The usual items of expenses are depreciation, rent, wages, salaries, interest, telephone, etc. Unusual charge, expense, or loss that is unlikely to occur again in the normal course of a business. Non-recurring expenses or direct expenses are all such expenses which are incurred by the consignor or consignee to bring these goods from consignor's place to consignee's place freight or carriage on purchase, insurance of goods in transit, loading and unloading charges etc.