Expense items

Definition

Expense items are costs incurred by a company in the process of creating its products or services. These can include materials, labor, marketing, and overhead costs related to product development and distribution.

Related terms

Overhead Costs:

Fixed and variable expenses that are not directly tied to the production of goods but necessary for running the business, such as rent and utilities.

Direct Materials: Raw materials used in the manufacture of products, directly contributing to the finished goods.

Operating Expenses:

Regular costs associated with operating a business, such as salaries, utilities, and rent, excluding the cost of goods sold