Expenditure

Expenditure refers to the total amount of money spent by an individual, business, or government to acquire goods and services or to cover operational costs. Expenditures are typically classified into capital expenditures, which involve spending on long-term assets like property or equipment, and operational expenditures, which are day-to-day costs like salaries, rent, and utilities. Expenditure management is crucial for budgeting, financial planning, and maintaining the overall financial health of an entity.

Example

A company’s expenditures include costs such as purchasing raw materials, paying employees, and maintaining equipment, all of which are critical to its operations.