expense

Expense is a cost incurred by a company through its operations to earn revenue. The expenses can be fixed, like rent and insurance, or variable, like labor or raw materials for production. Fixed expenses generally are costs that remain constant. Variable expenses are costs that vary, when production volume goes up, the variable expenses increase. Some expenses are deductible business expenses. 

Litigation expenses are costs incurred through any study, analysis, engineering report, test, project, or similar matter prepared in connection with a litigant’s case.

[Last reviewed in November of 2025 by the Wex Definitions Team] 

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