Classifying costs and expenses Some expenditure can be allocated to a particular enterprise (for example, maize seed can be allocated gure 6.17: Proht is what remains after expenses are deducted from income. to the maize enterprise). Other expenditures, called overheads, are general expenses not related to one particular enterprise (for example, electricity or rates Expenditure can also be divided into fixed and variable costs. Fixed costs do not wary with the level of production, but variable costs do. CP​