Expense Definition

Expense is the economic costs that a business incurs as a result of its operations in order to earn revenue. To be able to maximize profits, businesses must seek to reduce expenses with out also cutting in to revenues. Because expenses are such an important indicator of any business’s operations, there are specific accounting rules on expense recognition. Expense is a outflow of money to an alternative person or group to purchase an item or perhaps service, or for just a category of charges.