A measure of expense that captures all expenses and charges relating to the handling of an asset (e.g., amounts paid to sellers/ suppliers of fixed assets as an entry cost or exit cost). The asset in question may also be financial instruments, in which case such costs consists of all costs and charges paid to an issuer/ seller, etc. One-time expenses arise from non-operating activities, that is, non-recurring in nature- incurred by an entity not in relation to its usual activities.
An example of a one-time expense is the expenses associated with a relocation or settlement of a lawsuit. One-off expenses are not considered in the calculation of operating income (EBIT). However, such expenses impact the calculation of net income before taxes.
One-time expense are also known as one-off expenses or, broadly, as one-off costs.
