Definition:
Expenses are the cost of carrying on business operations to generate economic benefits.
Explanation
An expense is an outflow necessary to carry on business activities. Expenses can be fixed or variable. A fixed expense is independent of the level of output/production/sales e.g. Rent, Manager’s salary, support department costs, etc. On the contrary, a variable expense is a rely on the level of business activity e.g raw material, merchandise inventory, labor wages, etc.
Expenses include:
- Sales return
- Sales commission
- Opening stock
- Purchases
- Freight charges
- Cost of sales
- Administration expense
- Selling and distribution expense
- Finance charge/ Interest expense
- Salary expense
- Transportation inward/ outward
- Salary expense
- Wages
- Maintenance charges/ expense
- Cleaning expense
- Utility expense
- Electricity Bill
- Gas bill
- Internet charges
- Depreciation expense
- Amortization expense
- Bad debt expense
- Stationary expense
- Delivery expense
- Repair expense
- Rent expense
- Insurance expense
- Insurance in transit
- Daily utility expense
- Loss on disposal of Asset
- Impairment
- Foreign trip expense
- Tax expense
- Marketing
- Advertising
- Refreshment expense
- Discount allowed/ sales discount
- Entertainment expense
- Sundry expense
- Vehicle running & maintenance
- Travelling expense
- License fees
- Postage and courier
- Computer expenses
- Petty expenses
- Kitchen and office supplies
- Software subscription
- Legal charges
- Audit fee
- Training expense
- Research expense
- Publicity
- Commission
- Bank charges
- Exchange loss
- Vehicle rental expense
- Provident fund contribution
- Employees Old-Age Benefits
- Institution
- Staff welfare
- Medical Allowance
- Staff uniforms
- Gratuity
- Donation expense
