Expense is the?

Expense is the?

• A. Cost of production
• B. Money earned after costs
• C. Plan for income and expenses
• D. Selling products

Answer: (A)

Expense is the money spent to run the operation and produce goods. In livestock production, these costs include feed, veterinary care, labor, supplies, depreciation, and other inputs needed to raise and market animals. It represents the cost side of the business—the amount you have to pay out to produce the product. It isn’t money earned after costs (that would be profit or net income), nor is it a plan for income and expenses (that’s a budget), and it isn’t selling products (that’s revenue). Understanding expenses helps you see profitability, since profit equals revenue minus expenses.

Expense is the money spent to run the operation and produce goods. In livestock production, these costs include feed, veterinary care, labor, supplies, depreciation, and other inputs needed to raise and market animals. It represents the cost side of the business—the amount you have to pay out to produce the product. It isn’t money earned after costs (that would be profit or net income), nor is it a plan for income and expenses (that’s a budget), and it isn’t selling products (that’s revenue). Understanding expenses helps you see profitability, since profit equals revenue minus expenses.