Expenditure Categories are the sections into which business spending is divided. Generally, they help classify where and how money is being spent, helping businesses identify areas of overspending or inefficiency. Some commonly used expenditure categories include materials, overhead costs, staff wages, marketing expenses, and taxes. In some cases, businesses may also create specific expenditure categories to track their spending on a particular project or activity. Knowing your economics inside-out can be key to running a successful business, and understanding what goes into each expenditure category will help you do this more effectively.