To determine the recurrent expenditure for Eko Local Government, we need to understand what recurrent expenditure entails. Recurrent expenditure refers to the ongoing costs that a government incurs in its day-to-day operations. This typically includes expenses that are necessary for the continuous functioning of services, such as salaries, administrative costs, and consumables. Step-by-Step Explanation

1. Identify Recurrent Expenditure Items:
2. Doctors' and nurses' salaries: N120,000
3. Administrative expenses: N50,000
4. Drugs: N180,000 (as these are consumables for the hospital)
5. Hospital beds and mattresses: N40,000 (these can be considered as part of operational costs, but they are more of a capital expenditure)
6. Hospital building: N200,000 (this is a capital expenditure, as it is a one-time investment in infrastructure)
7. Classify Each Item:
8. Recurrent Expenditure:
   • Doctors' and nurses' salaries: N120,000
   • Administrative expenses: N50,000
   • Drugs: N180,000
9. Capital Expenditure:
   • Hospital building: N200,000
   • Hospital beds and mattresses: N40,000
10. Calculate Total Recurrent Expenditure:
11. Add the recurrent expenditure items together: [ \text{Total Recurrent Expenditure} = \text{Salaries} + \text{Administrative Expenses} + \text{Drugs} ] [ \text{Total Recurrent Expenditure} = N120,000 + N50,000 + N180,000 ] [ \text{Total Recurrent Expenditure} = N350,000 ]

Conclusion The correct answer is C. N350,000. Explanation of Other Options

• Option A: N390,000: This option incorrectly adds the hospital building cost (N200,000) and the hospital beds and mattresses (N40,000) to the recurrent expenditures. These are capital expenditures and should not be included in the recurrent expenditure calculation.
• Option B: N360,000: This option may have mistakenly included either the hospital building or the beds and mattresses, which are not recurrent expenditures.
• Option D: N170,000: This option likely omits key recurrent expenditures, such as the drugs or salaries, leading to an underestimation of the total recurrent expenditure.

Common Pitfalls

• Confusing capital expenditures with recurrent expenditures. Remember that capital expenditures are typically one-time costs for long-term assets, while recurrent expenditures are ongoing costs.
• Miscalculating totals by including non-recurrent items in the calculation.

Revision Summary

• Recurrent expenditure includes ongoing operational costs like salaries and consumables.
• Capital expenditures are one-time investments in assets like buildings and equipment.
• Total recurrent expenditure for Eko Local Government is N350,000.
• Always classify expenses correctly to avoid miscalculations.