Expenses that are deemed not reasonable based on the facts and circumstances, which are subsequently not tax-deductible by law.
Non-controllable costs, also known as uncontrollable costs, refer to expenses that cannot be influenced or managed by individual managers or departments within an organization.
Operating expenses are the costs and operating revenues are the income incurred and generated by an organization in the normal course of business, excluding any extraordinary items.
Padding refers to the practice of adding unnecessary material or expenses for the purpose of increasing the size or volume, such as padding an expense account to increase the company's reimbursement.
A stepped cost, also known as a semi-fixed cost, is an expense that remains fixed over a certain level of activity or production but changes by a fixed amount when the activity level significantly increases or decreases beyond specific thresholds.
Variable overhead costs represent the elements of an organization's indirect expenses for a product that change in total with fluctuations in production or sales levels. Examples include power, commissions earned by sales personnel, and consumable materials.
Zero-base budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period, starting from a 'zero base.' This approach contrasts with traditional budgeting, which typically only requires justification for incremental changes to the budget.
