Cost Accounting Question:
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What is the difference between Expenses and Expenditure?


Answer #1
The difference between expenses and expenditure. Expense is the outflow from a profit oriented organization while expenditure is the outflow from non-profit organization.

Answer #2
The expenditure may be for the purchase of an asset, a reduction of a liability, a distribution to the owners, or it could be an expense. For instance, an expenditure to eliminate a liability is not an expense, while expenditures for advertising, salaries, etc. will likely be recorded immediately as expenses.

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Tell me about your experience in cost accounting?Explain some of the methods used to allocate support costs?