Expenditure refers to the amount of money spent on goods and services over a specific period. It includes all types of spending, such as personal expenses, business costs, and government outlays. Understanding expenditure is crucial for budgeting and financial planning, as it helps individuals and organizations track their spending habits and make informed decisions. There are different categories of expenditure, including fixed expenditure, which remains constant over time, and variable expenditure, which can fluctuate. For example, rent is a fixed expenditure, while groceries are considered variable. Monitoring these categories can help manage finances effectively and ensure that spending aligns with income.