What does Non-Recurring Engineering mean?
Definitions for Non-Recurring Engineering
non-re·cur·ring en·gi·neer·ing
This dictionary definitions page includes all the possible meanings, example usage and translations of the word Non-Recurring Engineering.
Wikidata
Non-recurring engineering
Non-recurring engineering refers to the one-time cost to research, develop, design and test a new product. When budgeting for a project, NRE must be considered to analyze if a new product will be profitable. Even though a company will pay for NRE on a project only once, NRE costs can be prohibitively high and the product will need to sell well enough to produce a return on the initial investment. NRE is unlike production costs, which must be paid constantly to maintain production of a product. It is a form of fixed cost in economics terms. Once a system is designed any number of units can be manufactured without increasing NRE cost. In a project-type company, large parts of the project represent NRE. In this case the NRE costs are likely to be included in the first project's costs, this can also be called research and design. If the firm cannot recover these costs, it must consider funding part of these from reserves, possibly take a project loss, in the hope that the investment can be recovered from further profit on future projects. The concept of full product NRE as described above may lead readers to believe that NRE expenses are necessarily high.
Editors Contribution
non-recurring engineering
Non-Recurring Engineering costs are one-time up-front costs for new product development. This includes wages, supplies, proprietary capital equipment construction costs, etc. It is all pre-production (since it is for a new product), and once in production, you no longer have to pay out those costs because now you already have the human capital contribution (wages) and equipment needed to produce the product. If not a tangible product, then this is mostly in wages for development (e.g., application development). Consider it a startup cost to bring a product to production.
Once developed and manufactured, those up-front costs are no longer incurred anymore, hence the "non-recurring" aspect of the costs.
Numerology
Chaldean Numerology
The numerical value of Non-Recurring Engineering in Chaldean Numerology is: 5
Pythagorean Numerology
The numerical value of Non-Recurring Engineering in Pythagorean Numerology is: 2
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"Non-Recurring Engineering." Definitions.net. STANDS4 LLC, 2024. Web. 19 Apr. 2024. <https://www.definitions.net/definition/Non-Recurring+Engineering>.
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