What does expense mean in business




















They are living an extravagant lifestyle at the taxpayer's expense. If you lose your ticket , you will have to buy another at your own expense. He took me out to lunch on expenses. I usually travel standard class on the train , even when on expenses. No expense was spared in redesigning the chairman's office.

See also accrued expense. The accounting rule allows research-and-development costs to be instantly expensed or deducted from profits. Examples of expense. From the Cambridge English Corpus. In , a long-term care allowance programme was introduced in order to support people in need of care to compensate for care-related additional expenses.

Another measure examined here is an indicator that the respondent cannot meet essential expenses. Reporting material hardship and difficulty meeting expenses are somewhat correlated. As new medical technologies sent expenses on an upward spiral, small provincial hospitals, largely funded by small private bequests, could not keep up. However, compared to their high reliance on informal care, they are more independent from their families in terms of financing their living expenses.

They are likely to include at least all expenses, which are not possible to get higher tax deductions through the personal income tax system. Participants were offered an afternoon or an evening focus group and were reimbursed for outof-pocket expenses. The argument is that active asset management is required to outperform the market, which therefore leads to higher investment management expenses.

Workers cannot access their funds for house purchase, education, or medical expenses, as in some other countries. In addition, we examine whether the components of overall risk-adjusted performance risk, returns, and expenses are related. See all examples of expense. These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.

Collocations with expense. Click on a collocation to see more examples of it. See all collocations with expense. Here are some reasons why expenses are an important part of doing business:. Expenses are categorized based on how they relate to doing business and whether they change with the production of a product or service. It is important to understand how these expenses affect a business so that you can develop budgets and business plans. Different kinds of expenses are also reported differently on financial statements.

Here are the four kinds of expenses:. Every business has expenses that are unique to the industry or company. For example, a manufacturer has different expense categories than a retailer because it transforms raw materials into a finished product and sells the result at wholesale value, rather than a finished product directly to a customer.

However, there are some expenses you can expect to see in every business. Here are some of the most common examples of expenses you might see on a balance sheet or profit and loss statement:.

Find jobs. Company reviews. Find salaries. Upload your resume. Sign in. Career Development. What are expenses? Why are expenses important? You can track the costs of doing business.

Because expenses are directly related to the revenue they generate, you can see how much you spend as you do business. This helps you lower costs, allocate resources and compare the cost of doing business over time. You can see separate expenses by category. Since each expense is recorded under a category, you can see how much is spent on each category and how those costs change over time.

This lets you prepare for an increase in wages during busy periods or increases in utility costs during winter or summer. In some cases, expenses incurred by a business owner may be both personal and business-related. For example, a small business owner might use his car for both personal purposes and business-related activities. In this case, the portion of miles used for business purposes can be deducted. In the case of home offices, costs associated with the portion of the home that is exclusively used for business are generally deductible.

Some expenses incurred by a business are not reportable. These expenses include bribes, lobbying costs, penalties, fines, and contributions made to political parties or candidates.

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