Which term best describes the intention behind fees that largely benefit individuals?

The term that best describes the intention behind fees that largely benefit individuals is cost recovery. This concept refers to charging fees specifically designed to recoup the costs associated with providing certain services or benefits that primarily serve specific individuals or groups rather than the public at large.

Cost recovery is commonly seen in services such as permits, licenses, and recreational programs, where the fees collected are intended to cover the direct costs involved in offering those services. This approach helps ensure that the individuals who use and benefit from these services contribute to their funding, rather than relying on general tax revenues that come from the entire community.

Understanding cost recovery is crucial in public finance, as it promotes fairness and accountability in how services are funded, ensuring that those who derive direct benefits are responsible for covering the associated costs. This helps prevent the depletion of public resources while allowing for the sustainable provision of specialized services.