Cost recovery refers to the process of recouping expenses incurred in providing goods or services. Organizations, such as businesses or government agencies, often set prices or fees that reflect the costs associated with their operations. This ensures that they can cover their expenses and maintain financial sustainability. In many cases, cost recovery is essential for public services, like water supply or waste management. By charging users a fee that aligns with the costs of service delivery, these entities can fund ongoing operations and improvements, ultimately benefiting the community they serve.