What are executory costs?

Question

Quizplus · Accepted Answer

Executory costs refer to ongoing expenses that must be paid during the duration of a lease, regardless of whether the asset is purchased or leased. Therefore, option C is the correct choice. Options A and D are incorrect because they limit executory costs to only one type of lease (operating or finance). Option B is incorrect because it suggests that the maintenance costs are only applicable during the lease period, which may not be true in all cases.

What Are Executory Costs