Expense

An Expense is a cost incurred in the process of generating revenue. It represents the expenditure of resources, typically money, to acquire goods or services or to support operations. Expenses are recorded in financial statements and can be classified into fixed, variable, discretionary, and operational types.

Expense meaning with examples

• When preparing his monthly budget, David realized that his most significant Expense was rent, which took up nearly half of his income. He considered ways to reduce this Expense by looking for more affordable housing options in his area.
• The company's annual report highlighted a considerable increase in research and development expenses, reflecting their commitment to innovation and staying competitive in the market. This strategic Expense is necessary for long-term growth despite its short-term financial impact.
• As a college student, Jane learned quickly that managing her Expense on dining out was crucial for maintaining her monthly budget. She decided to cook at home more often, significantly reducing her food-related expenses and allowing her to save money for school supplies.
• During the financial audit, it was uncovered that several expenses were not properly documented, leading to discrepancies in the company's accounts. Proper tracking of expenses is vital for maintaining transparency and ensuring responsible management of funds in any organization.
• An unexpected medical Expense can catch anyone off guard, so it's essential to have an emergency fund to cover such situations. Establishing a budget that includes an allocation for unforeseen expenses can provide peace of mind and financial stability.