Business - Expenditures

• Revenue Expenditure


  Spending that does not result in a long-term benefit or increase in assets.
• Expenditure Types


  Current: short-term, capital: long-term, discretionary: non-essential expenses
• Budget Benefits


  Financial planning, resource allocation, risk management
• Fixed Expenditure


  A type of expenditure that remains constant over time, regardless of revenue or production levels
• Fixed Costs


  Rent, utilities, insurance, salaries, loan repayments, property taxes, maintenance, software licenses, telephone and internet services, professional fees, mortgage interest, fees and subscriptions
• Discretionary Expenditure


  Optional, voluntary, non-essential, variable expenses that are not necessary for operation or survival
• Discretionary Expenses


  Travel, marketing, R&D, equipment, subscriptions, training, donations
• Irregular Expenditure


  Unpredictable, infrequent, large or small, unplanned expenses for special events, home repairs, medical expenses, and more
• Common Irregular Expenses


  Car repairs, medical bills, home repairs, computer issues, property damage, travel expenses, special events, home improvement, disability, business expenses, insurance claims, tax penalties, emergency funds