ordinary and necessary expense
- A cost that is typically incurred, appropriate, and beneficial for the functioning of a specific industry or profession, and is spent in a particular tax year. This can also be identified as an ordinary and necessary business expense
- The company's decision to upgrade its computer systems was seen as an ordinary and necessary expense.
- For tax purposes, the cost of maintaining the warehouse was considered an ordinary and necessary expense.
- The cost of procuring raw materials is an ordinary and necessary expense in the manufacturing business.
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