Expenses/tips to reduce them I Bach A/B

Expenses/tips to reduce them I Bach A/B

Expense

• Is the cost of operations that a company incurs to generate revenue. It is what the business spends in order to carry out its activities.

  
  

• These expenses must be paid, even if the company has not sold any product or service.

• Common expenses include payments to suppliers, employee wages, factory leases, and equipment depreciation.

Types of expenses

• Administrative Expenses

• Selling Expenses

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What is an expense?

 Administrative Expenses

Administrative expenses are those attributed to the administrative area of an enterprise.

They are incurred in the day-to-day operations of a business and may not be directly tied to any specific function or department within the company.

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Some examples of administrative expenses are...

Some examples of administrative expenses are

• Office rent

• Salary of directors. assistant managers

• Utilities

Selling expenses

Selling expenses are necessary for a customer or user to purchase the products or services. 

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Some examples of selling expenses are...

Some examples of selling expenses are

• Salesmen's salaries

• Advertising

• Sales commissions

Both type of expenses

• should be made regardless of whether a product or service is sold

• For example, office rent will have to be paid, even if there are no sales.

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What are some tips to reduce expenses in a business?

Tips to reduce expenses

• If you can do it yourself, save the cost of hiring someone else.

• Negotiate with your suppliers. If you need to hire a service or buy raw materials, make sure you know the current rates and do not hesitate to negotiate a convenient price.

• Use technology to your advantage. Social networks will help you promote your business and find many free sites.

• Motivation is important to get good results. Doing things right from the start reduces expenses.

• Question yourself frequently. Many times an impulse leads us to make expenses that could be avoided. Before spending, ask yourself if it is really necessary.