A business office is a physical location devoted to the conduct of business activities. It is dedicated to promoting a particular business and is considered a necessary cost of doing business.
A carrying charge is a fee associated with holding an investment or conducting business that includes costs such as interest, storage, and insurance across various sectors like commodities, real estate, retailing, and securities.
A period during which a worker is idled due to machine malfunction or interruption of materials flow; also known as downtime. Dead time is a direct cost to the company.
An expense is a business cost incurred in operating and maintaining property, used in profit-directed business activities and calculated as the cost of goods and services used. Expenses can be currently deductible costs, distinct from capital expenditures that must be depreciated or amortized over the property's useful life.
A general expense refers to costs incurred during business operations that do not fall under categories such as selling, administrative, or cost of goods sold (COGS). These are typically miscellaneous expenses essential for running a business but not directly tied to core operational sectors.
Activities or services performed within an organization, without reliance on external contractors, often linked to ongoing debates about cost-efficiency versus outsourcing.
A nonrecurring charge is a one-time expense or write-off that appears in a company's financial statement. It is also called an extraordinary charge. This term includes unexpected events such as natural disasters, strategic business decisions like closing a division, or changes in accounting procedures.
Preliminary expenses are the initial costs incurred during the establishment of a company. These expenses often include costs such as issuing shares and can be written off to the share premium account.
The expenditure incurred in order to carry out the operations of a fixed asset. Examples are power, maintenance, and consumable materials for a machine or fuel, oil, tires, and servicing for motor vehicles.
Variable costs, or variable expenses, are business costs that fluctuate in direct proportion to changes in production or sales volume. They contrast with fixed costs, which remain constant regardless of production levels.
