Expenses are the costs incurred by individuals or businesses when they purchase goods or services. These can include everyday items like food, clothing, and transportation, as well as larger costs such as rent or mortgage payments. Understanding expenses is crucial for managing a budget effectively. In a business context, expenses are categorized into fixed and variable types. Fixed expenses, like rent or salaries, remain constant over time, while variable expenses, such as utilities or supplies, can fluctuate. Tracking these expenses helps in assessing financial health and making informed decisions.