trade expense

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Word: Trade Expense

Definition: A "trade expense" refers to the ordinary and necessary costs that a business or trade has to pay in order to operate. These expenses are important for running the business and are usually deducted from the income when calculating taxes.

Usage Instructions:

• Use "trade expense" when discussing costs related to a business. It is typically used in financial or accounting contexts.
• It is commonly used in conversations about business operations, taxes, and financial planning.

Example Sentence:

• "The company’s trade expenses for the year included rent, salaries, and materials needed for production."

Advanced Usage:

• In accounting, businesses track trade expenses to ensure they are not overspending and to maximize their profits. It's important for businesses to keep detailed records of these expenses for tax purposes.

Word Variants:

• Trade Expenses (plural): Refers to multiple expenses incurred by a business.
• Expense (singular): A single cost or expenditure.

Different Meanings:

• The term "expense" alone can refer to any cost incurred, not just those related to trade. For example, personal expenses like groceries or rent are not classified as trade expenses unless they are for a business purpose.

Synonyms:

• Business expense
• Operational cost
• Cost of doing business

Idioms and Phrasal Verbs:

• Cut expenses: This idiom means to reduce costs. For example, "The company decided to cut expenses by reducing staff."
• Write off an expense: This means to deduct an expense from taxable income.

Academic

Noun

1. ordinary and necessary expenses incurred in a taxpayer's business or trade

Synonyms

• business expense