Question: What Does Expenditure Mean?

What is the meaning of expenditure in English?

the total amount of money that a government or person spends: It’s part of a drive to cut government expenditure.

the act of using or spending energy, time, or money: The expenditure of effort on this project has been enormous..

What is difference between expenditure and expense?

An expenditure is a payment or disbursement. The expenditure may be for the purchase of an asset, a reduction of a liability, a distribution to the owners, or it could be payment in the same accounting period as the amount becomes an expense.

Is rent a fixed expense?

Unlike variable costs, a company’s fixed costs do not vary with the volume of production. Fixed costs remain the same regardless of whether goods or services are produced or not. … The most common examples of fixed costs include lease and rent payments, utilities, insurance, certain salaries, and interest payments.

What is expenditure with example?

noun. The definition of an expenditure is the act of spending money or time and it is something on which you spend money. An example of an expenditure is the money spent on office equipment that you have purchased. YourDictionary definition and usage example.

What are 3 examples of expenditure?

Expenditure ExampleS. NoExpenditure TypeExpenditure Classification1Purchase of raw materialsRevenue Expenditure – Direct2Electricity billsRevenue Expenditure – indirect3Advertising expensesRevenue Expenditure – indirect4Direct labor costsRevenue Expenditure – Direct6 more rows

What does expenditure mean in economics?

Expenditure is a reference to spending. In economics, another term for consumer spending is demand. The total spending, or demand, in the economy is known as aggregate demand.

What are the 4 types of expenses?

You might think expenses are expenses. If the money’s going out, it’s an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far).

What are 2 types of expenses?

There are two types of expenses. There are (jargon alert) ‘cost of sales’ and ‘overheads’. Cost of sales or sometimes called ‘direct costs’ are those costs in the business that directly impact the sales. For example, if you are making pens, then ink would be a direct cost.

When expenditure is more than income is called?

When income exceeds expenditure (your income is more than your expenses) then it is called a surplus. when expenditure exceeds income (your expenses are more than your income) then it is called a deficit or shortfall. … Fixed income is an amount of money a person receives, which does not change with time.

What is an expenditure account?

The Income and Expenditure Account is a summary of all items of incomes and expenses which relate to the ongoing accounting year. It is prepared with the objective of finding out the surplus or deficit arising out of current incomes over current expenses.

What are basic expenses?

The basic budgets are relative measures of what incomes are necessary to attain a specific standard of living. The budget items that are included in the basic family budgets are: housing, food, child care, transportation, health care, other necessities, and taxes.

What type of expense is rent?

Rent expense is a type of fixed operating cost or an absorption cost for a business, as opposed to a variable expense. Rental expenses are often subject to a one- or two-year contract between the lessor and lessee, with options to renew.