Discretionary Expenses. Discretionary expenses are non-essential costs that a business, household, or individual can survive without, if needed. You could broadly consider them "wants" rather than "needs."
30 other terms for unnecessary expenditure. additional expenditure. n. needless expense.
Discretionary spending, on the other hand, refers to nonessential costs that are not required to keep your household or business running.
Discretionary expenses are expenses paid for by individuals or businesses that aren't essential to their day-to-day lives or operations. These costs may not be predictable and can change over time.
Accrued Expenses vs Prepaid Expenses
Conversely, prepaid expenses are the result of receiving a service or goods after payment is made, creating an asset. Summarized, accrued expenses are incurred but yet to be paid whereas prepaid expenses have been paid but are yet to be realized.
However, this is not practical; therefore cost allocation plans or indirect cost rates are used to distribute those indirect expenditures. Typically, salaries and expenses for auditing, budgeting, payroll, personnel, purchasing, etc. are examples of costs that are considered to be indirect costs.
Controllable costs are things the executive, manager, or department even can control or change. If the executive, manager or department cannot change or control the cost, it is an uncontrollable cost. An example of an uncontrollable cost would be an allocation of administrative expenses to each job or department.
An expenditure that is not essential or that which can be dispensed with without loss or damage to property is considered unnecessary.
gratuitous, needless, uncalled-for. unnecessary and unwarranted. inessential. not absolutely necessary. spare.
prodigal. Use the adjective prodigal to describe someone who spends too much money, or something very wasteful. Your prodigal spending on fancy coffee drinks might leave you with no money to buy lunch. Prodigal usually applies to the spending of money.
Definitions of incidental expense. noun. (frequently plural) an expense not budgeted or not specified.
Necessary = What you need !! Unnecessary = What you want. Big difference.
petty expenses in British English
(ˈpɛtɪ ɪkˈspɛnsɪz ) plural noun. small expenses incurred in the course of your work or studies.
Utility bills, rental costs, salaries, depreciation, office supplies, and legal charges are a few examples of indirect expenses. Companies must bear these charges to keep running smoothly regardless of the products they manufacture or sell.
A sunk cost, sometimes called a retrospective cost, refers to an investment already incurred that can't be recovered. Examples of sunk costs in business include marketing, research, new software installation or equipment, salaries and benefits, or facilities expenses.
Examples of indirect costs include rent for office space, utilities, administrative salaries, accounting, legal services, general office supplies, and general office equipment.
Miscellaneous expenses are unexpected, minor costs not included in your regular budget, like small repairs or office supplies. TProperly tracking and categorizing these expenses helps businesses manage their budget and maintain accurate financial records.
An incurred expense is a cost that a business incurs when it purchases goods or services on credit. The purchase may be made either through a credit card or a billing arrangement with the seller of the goods.
An accrual, or accrued expense, is a means of recording an expense that was incurred in one accounting period but not paid until a future accounting period.
An accrued expense—also called accrued liability—is an expense recognized as incurred but not yet paid. In most cases, an accrued expense is a debit to an expense account. This increases your expenses.