As the name suggests, expenditure refers to the money spent on various needs and goals, including goods, services, and investments. For individuals, expenditures include costs like rent, groceries, and utilities, while for businesses, they cover operating expenses, wages, and inventory purchases. Tracking expenditure is crucial for effective budgeting and financial planning, helping individuals and companies monitor spending patterns. Expenditures can be divided into fixed and variable categories, with regular expenses like rent being fixed and irregular costs like repairs being variable.