expenditures

Examples of expenditures in the following topics:

• Capital Expenditures

  • In short, capital expenditures are the total costs needed to bring a project to a commercially operable status.
  • The following capital expenditures are capitalized:
  • Capitalized expenditures show up on the balance sheet.
  • Capitalized interest, if applicable, is also spread out over the life of the asset.The counterpart of capital expenditure is operational expenditure ("OpEx").
  • The funds used to construct and put a building into use are capital expenditures.

• Gross Domestic Product

  • The expenditure approach works on the principle that all products must be bought by a consumer; therefore, the value of the total product must be equal to consumers' total expenditures.
  • The expenditure approach only measures products that are intended to be sold.
  • Components of GDP by expenditure are:
  • GDI should provide the same amount as the expenditure method.
  • "National Income and Expenditure Accounts" divide incomes into five categories:

• The budget

  • The marketing budget represents a plan to allocate expenditures to each of the components of the marketing mix.
  • For example, the firm must establish an advertising budget as part of the marketing budget and allocate expenditures to various types of advertising media—television, newspapers, magazines.
  • Knowing what others in the same industry spend can be important to an organization whose performance lags behind the competition or to an organization that suspects that its expenditures are higher than they need to be.

• Profit Optimization

  • Revenue optimization is a method of determining 'optimal' profits or expenditures, and can be related to quadratics, as the vertex of a parabola can illustrate the point where the ‘maximum' revenue can be attained.
  • This method is effective for maximizing profits for companies and families, as it can ensure the highest profit for sales and the lowest amounts for expenditures.

• Technology decisions

  • One of the reasons for Deere's success over the many decades is its ability to keep its technology expenditures under control so it can weather the inevitable declines in demand for its products.

• Exporting

  • In national accounts, any direct purchases by non-residents in the economic territory of a country are recorded as exports of services; therefore, all expenditure by foreign tourists in the economic territory of a country is considered part of the export of services of that country.

• Key Characteristics of Entrepreneurs

  • This includes frugality, which is knowing how to stretch every cent so that expenditures are as low as possible.

• Benefits of Organization

  • For instance, the Production Manager may have the line authority to decide whether and when a new machine is needed but the Controller demands that a Capital Expenditure Proposal is submitted first, showing that the investment will have a yield of at least x%; or, a legal department may have functional authority to interfere in any activity that could have legal consequences.

• Direct and Indirect Measurement

  • Investment items in the indirect method include capital expenditures and investments (i.e. in securities, other businesses, tangible and intangible assets).

• General and Administrative Expenses (G&A)

  • While the potential list of expenditures for this line item is extensive, the following are some common expenses incurred that would be filed under SG&A: