Expense: meaning, definitions and examples

Generally used to refer to any amount of money spent, especially in the context of budgeting or financial planning.

• The company reduced its expenses to improve its profit margin.
• Travel expenses can quickly add up if not kept in check.

Often refers to the price of something when you buy it, or the effort required to achieve something. It can convey a sense of direct impact or consequence.

• The cost of the new phone is quite high.
• Building a new bridge will cost the city millions of dollars.
• The cost of gaining that experience was losing many friends.

Usually used to refer to an amount of money that a business or government spends, often in a formal or financial report.

• The government is reviewing its expenditure on public health services.
• A significant part of our budget is allocated to capital expenditures.

Typically denotes an initial cost or investment, particularly in business or large projects.

• The initial outlay for the equipment was substantial, but it reduced production costs in the long run.
• Starting a new business requires a significant financial outlay.

General term for money spent to buy or do something. Commonly used in everyday conversations and business discussions.

• The trip turned out to be a significant expense
• She carefully recorded each expense in her ledger

More formal term, often used in financial or governmental contexts. It implies planned or necessary spending over a period of time.

• The company needs to control its expenditure to become profitable
• The government increased expenditure on education last year

Refers to an initial amount of money spent for a specific purpose, often associated with investments, projects, or significant purchases.

• The building's renovation required a large initial outlay
• Investors are advised to consider the outlay versus the potential return

Refers to the price of something, or the amount of money required to obtain it. Suitable for both specific and general contexts when discussing amounts required for purchases or activities.

• The cost of living in this city is quite high
• He was surprised by the cost of the repairs

Use 'expense' to refer to the money needed to buy or do something, often used in a formal or financial context.

• The company's expenses for the month exceeded their budget.
• Travel expenses can accumulate quickly if they are not monitored.

Use 'spend' to talk about using money or resources for a specific purpose, typically in everyday or personal contexts.

• She decided to spend her birthday money on a new bike.
• They spend a lot of time and resources on research and development.

Use 'pay out' when referring to the act of giving money, typically in large sums, often used in an informal context.

• The insurance company will pay out a substantial amount to cover the damages.
• They had to pay out a lot of money to settle the lawsuit.

Use 'disburse' when talking about paying out money from a fund or a large sum, especially in formal and official settings.

• The government plans to disburse funds to support the new housing program.
• The charity disbursed over a million dollars in aid to the victims.