contingency expenses

S

sturkki

New Member
Finland
Hi,

Could somebody please explain me what kind of expenses are the "contingency expenses" for example in the monthly reporting (finance)?

I do have a clue but I would need to know for sure.

thank you in advance
 
    • sturkki said:
    Hi,

    Could somebody please explain me what kind of expenses are the "contingency expenses" for example in the monthly reporting (finance)?

    I do have a clue but I would need to know for sure.

    thank you in advance
    Click to expand...

    "monthly reporting " Is this a report of actual expenditure in the month?
     
    in every day terms people have "contigency funds" for emergencies in their life, unforeseen events or something that was not a matter of choice.

    I'm not sure if your context means:
    a sum set aside for emergencies which might arise in the future
    or
    sums which have actually been spent to meet emergencies which have happened
     
    yes, by "monthly reporting" I refer to the report done in all the companies in order to close the financial movements of the month, including different kinds of expenses.
     
    sturkki said:
    yes, by "monthly reporting" I refer to the report done in all the companies in order to close the financial movements of the month, including different kinds of expenses.
    Click to expand...

    In that case I don't know the answer. I could understand it's use in a budget plan or a forecast of expenditure but not in actual expenditure.
     
    hmm... what could it be in a budget plan or forecast of expenditure then?

    maybe the difference in use might have something to do with the American/British English...

    thanks
     
    In those cases it could be expenditure not strictly operating costs or equipment purchase etc. but for possible litigation or strike costs. In other words the cost of fighting a case in court or hiring other staff or serivces because your staff are on strike.
     
    If I understand it correctly, a contingency fund or account is a budgeted amount intended to cover unplanned costs. It is rather like insurance. You set some extra money aside, in case someone spills coffee in the copy machine, or you get a rush job and need to hire a temporary worker, or the price of heating oil suddenly goes up, or....
    Web examples:
    "the Board intended to create a 'contingency account' ... 'to assist other entities' and 'respond effectively to any unexpected needs as they arise...'"

    "...contingency fund to cover potential misestimates and unforeseeable events"
     
    Kelly B said:
    If I understand it correctly, a contingency fund or account is a budgeted amount intended to cover unplanned costs. It is rather like insurance. You set some extra money aside, in case someone spills coffee in the copy machine, or you get a rush job and need to hire a temporary worker, or the price of heating oil suddenly goes up, or....
    Web examples:
    "the Board intended to create a 'contingency account' ... 'to assist other entities' and 'respond effectively to any unexpected needs as they arise...'"

    "...contingency fund to cover potential misestimates and unforeseeable events"
    Click to expand...

    This must be it! Thanks to everybody, you've been a great help!
     
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