What Do We Mean By the 'Expenditure Cycle?'

By Pam Miller The concept of the “expenditure cycle” has been discussed and studied for many years in textbooks—even though many of us have never heard the term. At its most basic level, the expenditure cycle begins with the decision to make a purchase. The cycle includes: The purchasing process performed by an individual or by a purchasing department; The reconciliation process performed by an individual receiving the goods or services or a receiving department, both in conjunction with…