Word: Business Expense
Definition: A "business expense" refers to the costs that a company or individual incurs while running their business. These expenses are necessary for the business to operate and can include things like rent, salaries, office supplies, and utilities.
Usage Instructions:
"Business expense" is a noun. You can use it in sentences to discuss the money spent on activities related to business.
It often appears in discussions about finances, accounting, or tax reporting.
Examples:
"The cost of office supplies is considered a business expense."
"She recorded all her business expenses to prepare for tax season."
Advanced Usage:
In accounting or finance discussions, business expenses can be categorized as "fixed" (costs that do not change, like rent) or "variable" (costs that can change, like materials needed for production).
Understanding business expenses is crucial for financial planning and budgeting in a business.
Word Variants:
Business Expense Report: A document that lists all the expenses incurred during business activities, often used for reimbursement.
Tax Deductible Expense: Some business expenses can reduce taxable income, making them "deductible" when filing taxes.
Different Meanings:
Synonyms:
Cost
Expenditure
Outlay
Charge
Idioms and Phrasal Verbs:
"Cut costs": This means to reduce business expenses to save money.
"Run up expenses": This means to accumulate or increase costs over time.
Summary:
A business expense is an important concept in managing finances for businesses. Understanding which expenses are necessary helps keep a business profitable and compliant with tax regulations.