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What does expense mean?

The meaning of EXPENSE is financial burden or outlay : cost. How to use expense in a sentence.

What is a business expense?

An expense is the cost of operations that a company incurs to generate revenue. It is simply defined as the cost one is required to spend on obtaining something. As the popular saying goes, “it costs money to make money.” Common expenses include payments to suppliers, employee wages, factory leases, and equipment depreciation.

What is the difference between expenses and expenditures?

The line between expenses and expenditures is subtle but important. Generally speaking, an expenditure is the total cost of a transaction, while an expense is that transaction’s offset to a company’s revenue. A type of transaction that highlights this distinction is capital expenditures.

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