Expenditure

In economics an expenditure is when a company buys fixed assets that will create a benefit in the future, or when the company upgrades existing assets so that they can be used for a longer time. This constitutes an investment, as the benefits of the use usually last much longer than the fiscal year. Depreciation also happens: the cost that the company took to upgrade or buy the assets will usually not be deducted directly, in one year; depending on the form of calculation used, a part of the cost will be deducted each year, as a form of expense.

Category:Economics