What are expenses that an organization wouldn't have incurred if there was no business interruption called?

The expenses that an organization wouldn't have incurred if there was no business interruption are known as extra expenses. These are costs that are directly related to the recovery process after a business interruption, intended to help the business resume its operations as quickly as possible. They may include expenses for temporary facilities, expedited shipping, and additional labor costs needed to meet customer demand during the interruption period.

In contrast, fixed expenses refer to ongoing costs that remain the same regardless of business output, such as rent or salaries. Normal operating expenses are the regular costs required to run the business for the day-to-day operations. Variable expenses fluctuate with the level of production or sales, like raw materials. These categories do not address the unique costs incurred specifically as a result of business interruption, which is why extra expenses is the appropriate term for these specific costs.