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Expenditure

JC Business Studies Expenditure

TermDefinition
Fixed expenditure Spending that remains the same each week or month, e.g. mortgage, rent
Irregular expenditure Spending that changes each week or month, e.g. phone bill, groceries
Discretionary expenditure Money we spend on luxury items once we have paid our fixed and irregular expenditure
Capital spending Long term spending on items that will last for some time, e.g. washing machine, TV, car
Current spending Spending on day to day items, e.g. food, heating
False economy Buying something that is cheap, even though you don't need it
Impulse buying Buying on the spur of the moment, without planning
Opportunity cost The item that is foregone when you have to choose between two or more items
Created by: EvieR13
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