Eko Local Government expenditure Hospital building ---------------------- N200,000 Drugs ---------------------------------- N180,000 Hospital beds and mattresses ------------ N40,000 Doctors' and nurses' salaries ---------- N120,000 Administrative expenses ----------------- N50,000 Recurrent expenditure is
A. N390,000 B. N360,000 C. N350,000 D. N170,000
Correct Answer: A
Explanation
Recurrent expenditure consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation). Hence we have; 180,000 + 40,000 + 120,000 + 50,000 =390,000Â
