Transaction or usage fees are typically associated with what kind of costs?

Transaction or usage fees fall under recurring usage costs because they are charges incurred each time a service is used or a transaction is processed. This pattern indicates that they are not typically paid as a single one-time expense, but rather on an ongoing basis as transactions occur.

This understanding is essential in assessing financial requirements and potential cash flow implications related to services or products that operate on a usage-based model. As users engage with the service, these fees accumulate, which is a hallmark of recurring costs.

In contrast, other options like one-time transaction costs refer to fees that are incurred for a single transaction without ongoing implications, fixed costs represent expenses that do not change with the level of goods or services produced, and incentive fees relate to compensation that is contingent on performance rather than usage. Understanding these distinctions helps in effective financial planning and analysis.