Expenses

Definition:

Economic costs that a business incurs through its operations in order to gain revenue. In order to get the best profits, businesses must attempt to reduce expenses without cutting into revenues.

Examples:

With the increase in fuel costs over the past two years, manufacturing expenses have risen, so the price of goods has gone up as well.

One of the first things a new accountant needs to learn about a company is how they categorize their expenses on the monthly budget spreadsheets.