Which type of expenses can the FNS unit receive deductions for?

The FNS unit can receive deductions for expenses that are incurred or billed because this reflects how accounting practices recognize expenses. Incurred expenses are those that have been generated but may not have been paid yet, allowing entities to manage their financial reporting accurately based on when the costs are recognized rather than when the cash transactions occur.

This approach helps in aligning financial statements with the actual costs of operations, ensuring that all expenses related to providing services or goods are recorded in the period they are incurred. Options that limit the deductions only to paid expenses or only to recurring expenses do not capture the full scope of costs that may impact the financial outcomes of the FNS unit. Additionally, only recognizing expenses that are billed but not incurred would neglect costs that have already been committed to but not yet finalized in billing, leaving a gap in financial management.