Expenditure

EXPENDITURE

the action of spending funds."the expenditure of taxpayers' money"

This is making a decision/choice based on limited/scarce resources. The item not selected is the opportunity cost- opportunity foregone.

OPPORTUNITY COST

EXAMPLE OF OPPORTUNITY COST

Example I have €2.00. I can buy ice-cream or Pringles. I choose ice-cream. Opportunity cost = Pringles. Financial cost = €2.00

Buying on the spur of the moment  Without thinking or planning example: I go into a shop looking for milk but instead buy a chocolate bar as well as the milk.

IMPULSE BUYING

FALSE ECONOMY

Buying something because it is cheap even when you don't need it. EXAMPLE 2 FOR 1 Buy 1 get 1 free, etc.. 

FIXED EXPENDITURE

Money that is spent at the same time each time, each week, month, yearThis amount is usually the same EXAMPLE mortgage rent loan repayments

The amount paid out varies,It is paid at different times.EXAMPLEESB, clothes, shoes, groceries

IRREGULAR EXPENDITURE.

DISCRETIONARY EXPENDITURE

Money spent on things you can live without(luxury items)The amount variesEXAMPLE sky tv, playstation, wifi, holiday

PRIORITISING (BUDGETING)

If you have limited income you must plan to spendyou must make sure you have enough for~FIXED EXPENDITURE first~Then IRREGULAR EXPENDITURE~Then finally if you have money left you can afford to spend it on DISCRETIONARY EXPENDITURE

If you have a deficit...

You must reduce discretionary expenditure first.

Current expenditure

(revenue expenditure)Spending money on day to day items,EXAMPLEfood, drink, petrol, phone credit

Capital Expenditure,

Spending money on durable items~items that last a long timeEXAMPLEcar, tv, house, furniture, washing machine.

Calculating an ESB bill,

~Subtract present from previous meter reading,~Multiply by the rate per unit~Add the standing charge,(rental of equipment)

Present 6734 Previous 5890 No of units used  844 Rate per unit .20 Sub total 168.80 Standing charge   10.00 Total charge 178.00         

Present6734Previous5890No of units used 844Rate per unit.20Sub total168.80Standing charge  10.00Total charge178.00