Expenditure in accounting, also known as “cost of goods sold,” is the cost associated with buying or producing a company’s products or services. This cost includes raw materials, labor, shipping, and other related expenses such as rent and utilities. In essence, this cost reflects the amount of money that must be expended by a business to produce and deliver its products or services to customers. When properly managed and monitored, tracking expenditures can help businesses make sound decisions on how best to allocate their resources in order to remain successful.