Question: What Are 3 Examples Of Expenditure?

What is an example of expenditure?

Expenditure – This is the total purchase price of a good or service.

For example, a company buys a $10 million piece of equipment that it estimates to have a useful life of 5 years.

This would be classified as a $10 million capital expenditure..

What are the 3 types of expenditure?

The 3 types of expenses include: fixed, variable and periodic. Fixed expenses occur in predictable amounts and are usually paid in monthly intervals. Periodic expenses also occur in predictable amounts and intervals, but are much less frequent (i.e. quarterly).

What are expenditures?

An expenditure is money spent on something. Expenditure is often used when people are talking about budgets. It is the government’s job to decide what to do with tax money collected, or in other words, to determine the expenditure of public funds. The word is more than a long way of saying expense.

What is an example of capital expenditure?

Examples of capital expenditures are as follows: Buildings (including subsequent costs that extend the useful life of a building) Computer equipment. … Furniture and fixtures (including the cost of furniture that is aggregated and treated as a single unit, such as a group of desks)

What type of expenditure is rent?

By contrast, revenue expenditure is the expenditure involved in the day-to-day running of the business, and includes items such as repairs to properties (but not improvements), staff wages, legal fees, interest paid (but not capital repayments on a mortgage), any rent paid, council tax and such like.

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).

Is an expenditure an expense?

Expense refers to short-term costs incurred by the company. Whereas, expenditure refers to the long-term costs incurred by the company for its establishment and operations. … In comparison, expenses have a direct effect on the profit and loss statement of a company and record as the costs incurred to generate revenues.

How do you calculate expenditures?

expenditure approach: The total spending on all final goods and services (Consumption goods and services (C) + Gross Investments (I) + Government Purchases (G) + (Exports (X) – Imports (M)) GDP = C + I + G + (X-M). depreciation: The measurement of the decline in value of assets.

What is difference between expenditure and expense?

Expenditure will generate future economic benefits for the company, but the expenses will only benefit the current period. The major difference between Expense vs Expenditure is that the expenditure is a single time investment of money. … Expenditure is of a longer-term. Conversely, Expenses are of the shorter term.