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expenditure

ik-SPEN-dih-cher /ɪkˈspɛndɪtʃər/

nounB2TOEFLIELTS

formalbusiness

The action of spending funds; an amount of money spent.

Expenditure refers to the total amount of money spent by an organization or individual. It encompasses all costs incurred to generate revenue or operate, from salaries to raw materials.

The story behind the word. The word 'expenditure' comes from the Latin verb 'expendere,' meaning 'to weigh out, to pay out.' In ancient times, money was often weighed, not just counted. So, an 'expenditure' literally meant 'weighing out' the funds to pay for something. It's about the physical act of disbursing resources.

Word relationships

expense: Often used interchangeably, though 'expenditure' can imply a larger, more formal outlay.
outlay: Money spent, especially on something new or for a specific purpose.
cost: The amount required or paid for something; 'expenditure' is the act or amount of spending.

revenue: Money earned, rather than money spent.
income: Money received, rather than money paid out.

Commonly confused with

expense: Often used interchangeably, but 'expenditure' can refer to the act of spending or the total amount spent, while 'expense' often refers to a particular cost incurred.

Word family

expend (verb): To spend or use up (resources such as money or time).

Collocations

capital expenditure
operating expenditure
public expenditure
reduce expenditure
control expenditure

Example sentences

"The government's annual expenditure on healthcare and education constitutes a significant portion of its budget." Government expenditures.
"To improve profitability, the CEO initiated a new policy aimed at reducing unnecessary expenditures across all departments." Controlling business expenditures.
"The company approved a large capital expenditure for upgrading its manufacturing facility, expecting long-term benefits." Capital expenditure.

Memory hook

EXPENDITURE is money EXPENDED (spent). Money paid out

When not to use

While 'expenditure' can sometimes be used for non-financial spending (e.g., 'expenditure of effort'), in a financial context, it strictly means money spent.

Fun facts

In economics, 'government expenditure' is a key component of a country's gross domestic product (GDP).
Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.