Question: What Kind Of Expense Is Groceries?

What items are included in operating expenses?

An operating expense is an expense a business incurs through its normal business operations.

Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development..

What is an example of a variable expense?

Examples of Household Variable Expenses The cost of household maintenance such as painting or yard care. General expenses such as clothing, groceries, and car maintenance. Resource expenses such as fuel, electricity, gas, and water. Other expenses such as entertainment or dining out.

What is the difference between COGS and operating expenses?

COGS includes direct labor, direct materials or raw materials, and overhead costs for the production facility. … Operating expenses are the remaining costs that are not included in COGS. Operating expenses can include: Rent.

What are personal expenses?

1. personal expense – the cost of personal or family living; “some personal expenses are tax deductible” disbursal, disbursement, expense – amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures)

Is groceries a fixed expense?

Fixed expenses are your weekly, monthly, or annual bills that don’t fluctuate. These include things like mortgage or rent payments, car payments, insurance premiums, utility bills, and the average amount you spend on groceries.

Is rent a fixed or variable expense?

Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.

What are the 3 types of expenses?

There are three major types of expenses we all pay: fixed, variable, and periodic. Do you know the difference?

How do you list expenses?

Steps to Track Your ExpensesWrite down your monthly income.Write out your monthly expenses. Start with food, shelter (your mortgage or rent plus utilities), clothing, and transportation. … Make sure your income minus your expenses equals zero.

What is expenses and examples?

An expense is the cost of operations that a company incurs to generate revenue. As the popular saying goes, “it costs money to make money.” Common expenses include payments to suppliers, employee wages, factory leases, and equipment depreciation.

What is excluded from operating expenses?

Operating expenses are expenses a business incurs in order to keep it running, such as staff wages and office supplies. Operating expenses do not include cost of goods sold (materials, direct labor, manufacturing overhead) or capital expenditures (larger expenses such as buildings or machines).

What are the 4 types of expenses?

Terms in this set (4)Variable expenses. Expenses that vary from month to month (electriticy, gas, groceries, clothing).Fixed expenses. Expenses that remain the same from month to month(rent, cable bill, car payment)Intermittent expenses. … Discretionary (non-essential) expenses.

What are examples of administrative expenses?

Typical items listed as general and administrative expenses include:Rent.Utilities.Insurance.Executives wages and benefits.The depreciation on office fixtures and equipment.Legal counsel and accounting staff salaries.Office supplies.

Which is an example of expense?

Expenses Example – Amazon Operating expenses consist of the cost of sales, fulfillment, marketing, technology and content, general and administrative, and others. Non-operating expenses comprise interest expense (and income), and other expenses (income).

What bills do you pay monthly?

Regular bills often include:Rent or mortgage.Electricity.Gas.Water and sewer.Internet/cable/phone.Subscription services, such as a gym membership, newspaper, Netflix or Hulu.Credit card bills and loan payments.Insurance.

Are groceries a variable expense?

Not all variable expenses are discretionary expenses, however. Variable expenses are defined as such because the amount you spend may vary each month. … Grocery shopping is also a variable expense. Your utility bills may also be variable expenses because they may change from month to month.

What are the categories of expenses?

There are three major types of financial expenses: Fixed, Variable, and Periodic. Fixed expenses are expenses that don’t change for long periods of time, like office rent or vehicle lease payments for you or your staff. Variable expenses change from month to month, such as utilities or meals and entertainment.

What is the 70 20 10 Rule money?

70% of your monthly budget should go to monthly expenses. 20% should go to savings.

What are examples of monthly expenses?

NeedsMortgage/rent.Homeowners or renters insurance.Property tax (if not already included in the mortgage payment).Auto insurance.Health insurance.Out-of-pocket medical costs.Life insurance.Electricity and natural gas.More items…