{"id":999972560,"date":"2025-04-25T17:15:35","date_gmt":"2025-04-25T10:15:35","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999972560"},"modified":"2026-06-09T13:48:20","modified_gmt":"2026-06-09T06:48:20","slug":"what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/","title":{"rendered":"What are incidental costs? Detailed and specific management instructions on incidental costs"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Unplanned expenses are expenses that often arise during the implementation of work, projects or business operations. To manage them well, leaders at all levels need to understand where the unplanned expenses come from and how to manage them effectively.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, <a href=\"https:\/\/bizzi.vn\/\">Bizzi<\/a> will provide comprehensive information and perspective regarding the costs incurred.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/#Dinh_nghia_chi_phi_phat_sinh\" >Definition of incidental costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/#Anh_huong_cua_chi_phi_phat_sinh_den_tinh_hinh_tai_chinh_cua_cong_ty\" >Impact of incidental costs on the company&#039;s financial situation\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/#Vai_tro_cua_ke_toan_trong_viec_xac_dinh_va_theo_doi_chi_phi_phat_sinh\" >The role of accounting in identifying and tracking costs incurred<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/#Tam_quan_trong_cua_viec_quan_ly_chi_phi_phat_sinh_de_tang_loi_nhuan\" >The Importance of Managing Incurred Costs to Increase Profitability\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/#Cach_ghi_nhan_chi_phi_phat_sinh_hieu_qua\" >How to record costs effectively\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/#Cach_quan_ly_chi_phi_phat_sinh_hieu_qua\" >How to manage incidental costs effectively<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/#Nen_tang_Bizzi_ho_tro_%E2%80%9CQuan_tri_chi_phi_kinh_doanh%E2%80%9D_nhu_the_nao\" >How does the Bizzi platform support \u201cBusiness Cost Management\u201d?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-are-incidental-costs-detailed-and-specific-management-instructions-for-incidental-costs\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Dinh_nghia_chi_phi_phat_sinh\"><\/span><b>Definition of incidental costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Incurred expenses are actual expenses that a business must pay or record during the course of business, production or operation \u2013 whether paid or not.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Examples of incidental costs:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purchase of raw materials and goods<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pay employees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electricity, water, internet, office rental costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Advertising and marketing costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cost of machinery repair and equipment maintenance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Travel, business, and entertainment expenses<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Characteristics of incidental costs:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Actual occurrence at a given point in time (whether money has been spent or not)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the basis for recording in accounting books, helping to determine business results.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can be fixed costs (like office rent) or variable costs (like the cost of purchasing raw materials)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Must have valid documents such as invoices, contracts, acceptance reports... to be legally recorded.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Anh_huong_cua_chi_phi_phat_sinh_den_tinh_hinh_tai_chinh_cua_cong_ty\"><\/span><b>Impact of incidental costs on the company&#039;s financial situation\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Unexpected costs are an inevitable part of business operations, but if not effectively controlled, they can negatively impact a company&#039;s profits, cash flow, and ability to grow sustainably.<\/span><\/p>\n<p><b>Direct impact on profits<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The more expenses arise \u2192 profit after tax decreases if revenue does not increase accordingly.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If costs exceed plan \u2192 Business may lose money<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If cost control is good \u2192 Maintain or increase stable profits<\/span><\/li>\n<\/ul>\n<p><b>Impact on Cash Flow<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Incurred costs, whether paid or not, impact:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cash outflow: when making immediate payment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expected cash flow: when expenses are incurred but not yet paid (must be paid in the future)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If not managed well, businesses can easily fall into the following situation:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cash flow shortage<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inability to pay wages, taxes, debts<\/span><\/li>\n<\/ul>\n<p><b>Impact on cost structure and operating efficiency<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The costs incurred reflect:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Where do businesses spend the most (marketing, production, human resources...)?<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">High or low cost\/revenue ratio \u2192 affects operating efficiency<\/li>\n<\/ul>\n<p><b>Impact on financial statements and financial ratios<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Incurred costs are a factor that affects many <\/span><b>key indicators<\/b><span style=\"font-weight: 400;\">, like:<\/span><\/p>\n<table style=\"height: 321px;\" width=\"973\">\n<tbody>\n<tr>\n<td><b>Index<\/b><\/td>\n<td><b>How affected<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Gross profit margin<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Input costs increase \u2192 Margin decreases<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Net profit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Operating costs increase \u2192 Net profit decreases<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">ROA \/ ROE<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Costs increase \u2192 Return on assets \/ capital decreases<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cost\/Revenue Ratio<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Increase if not well controlled<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Pressure on management and investment decisions<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Drain the budget<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Impact on expansion plans, new investments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leading to the postponement or cancellation of important campaigns<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999972563\" aria-describedby=\"caption-attachment-999972563\" style=\"width: 1140px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999972563 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-chi-phi-phat-sinh-la-gi-1.jpg\" alt=\"bizzi-cost-arrival-what-is-it 1\" width=\"1140\" height=\"761\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-chi-phi-phat-sinh-la-gi-1.jpg 1140w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-chi-phi-phat-sinh-la-gi-1-300x200.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-chi-phi-phat-sinh-la-gi-1-1024x684.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-chi-phi-phat-sinh-la-gi-1-768x513.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-chi-phi-phat-sinh-la-gi-1-18x12.jpg 18w\" sizes=\"(max-width: 1140px) 100vw, 1140px\" \/><figcaption id=\"caption-attachment-999972563\" class=\"wp-caption-text\">Incurred costs affect the company&#039;s profits, cash flow, and sustainability.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Vai_tro_cua_ke_toan_trong_viec_xac_dinh_va_theo_doi_chi_phi_phat_sinh\"><\/span><b>The role of accounting in identifying and tracking costs incurred<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The accounting department is the center of the entire financial management system of the enterprise. Accounting not only records but also participates in the process of control, analysis and reporting - helping the enterprise make accurate and timely decisions.<\/span><\/p>\n<p><b>Record expenses at the right time, in the right type, and according to regulations<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine which costs are eligible and allowable for recognition.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Classify costs by purpose: selling costs, administrative costs, financial costs, production costs, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Record in accounting books <\/span><b>right time<\/b><span style=\"font-weight: 400;\"> accrual accounting<\/span><\/li>\n<\/ul>\n<p><b>Check documents and ensure the legality of expenses<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Check invoices, contracts, payment requests, acceptance reports, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure full procedures, signatures, and seals as prescribed<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reject invalid or suspected fraudulent payments<\/span><\/li>\n<\/ul>\n<p><b>Analyze and track cost variances<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compare actual costs with budget<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Analysis of increase and decrease fluctuations by period and by department<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Issue warnings if costs exceed thresholds or show unusual upward trends<\/span><\/li>\n<\/ul>\n<p><b>\u00a0Coordinate with departments to control costs<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purchasing: check input costs, unit prices, contracts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Human resources: salary, bonus, social insurance costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business: marketing costs, commissions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production: material and processing costs<\/span><\/li>\n<\/ul>\n<p><b>Prepare cost reports for management and strategy purposes<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monthly, quarterly, yearly cost reports<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Actual vs Plan Comparison Report<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cost reporting by product, project, department<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cost\/revenue ratio, average cost, etc.<\/span><\/li>\n<\/ul>\n<p><b>Support for auditing, settlement and tax management<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Systematic recording and storage for internal and independent audit purposes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Corporate income tax settlement: ensuring expenses are deducted properly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Limit the risk of being inspected by tax authorities<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Tam_quan_trong_cua_viec_quan_ly_chi_phi_phat_sinh_de_tang_loi_nhuan\"><\/span><b>The Importance of Managing Incurred Costs to Increase Profitability\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Effective cost management is key to increasing profits and ensuring sustainable growth for businesses, large or small. Here is a detailed analysis of why cost management is so important:<\/span><\/p>\n<p><b>Reduce waste \u2013 optimize resource efficiency<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify and eliminate non-value-added expenses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Optimize the use of raw materials, human resources and assets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accurately evaluate the investment efficiency of each activity<\/span><\/li>\n<\/ul>\n<p><b>Support more accurate strategic decision making<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Know which departments to increase or decrease budget for<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjust product prices to ensure profit margins<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Decide whether to expand, shrink, or discontinue a project\/product line<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999972565\" aria-describedby=\"caption-attachment-999972565\" style=\"width: 923px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999972565 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-toi-uu-chi-phi-phat-sinh-la-gi-1-1.jpg\" alt=\"bizzi-to-uo-what-are-the-incurred-expenses-1\" width=\"923\" height=\"544\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-toi-uu-chi-phi-phat-sinh-la-gi-1-1.jpg 923w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-toi-uu-chi-phi-phat-sinh-la-gi-1-1-300x177.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-toi-uu-chi-phi-phat-sinh-la-gi-1-1-768x453.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-toi-uu-chi-phi-phat-sinh-la-gi-1-1-18x12.jpg 18w\" sizes=\"(max-width: 923px) 100vw, 923px\" \/><figcaption id=\"caption-attachment-999972565\" class=\"wp-caption-text\">Effective cost management is the key to increasing profits and ensuring sustainable business growth.<\/figcaption><\/figure>\n<p><b>\u00a0Improve cash flow and solvency<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Proactively forecast cash outflows<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid the situation of &quot;no cash on payment due date&quot;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain credibility with suppliers, partners, employees<\/span><\/li>\n<\/ul>\n<p><b>Increase competitiveness and market positioning<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keep prices competitive while ensuring profits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increase budget for marketing, research new products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invest in quality and after-sales service without worrying about &quot;overspending&quot;<\/span><\/li>\n<\/ul>\n<p><b>Contribute to ensuring sustainable development<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Less affected by market fluctuations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adaptable to changes in supply chain, raw material prices, taxes and fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Having a stable financial background \u2192 favorable for calling for investment and borrowing capital for expansion<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cach_ghi_nhan_chi_phi_phat_sinh_hieu_qua\"><\/span><b>How to record costs effectively\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Record incurred costs<\/b><span style=\"font-weight: 400;\"> is the accounting or financial management process of recording actual expenses that have occurred during the operation of a business, whether or not the expenses have been paid. This is an important step to accurately reflect the financial situation and operating performance of the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are ways to record expenses:<\/span><\/p>\n<p><b>Recorded at the right time<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Apply the accrual accounting principle: costs are recorded when incurred, not when paid.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, a service invoice for March, even if paid in April, must still be recorded in March.<\/span><\/li>\n<\/ul>\n<p><b>Clear cost classification<\/b><\/p>\n<table style=\"height: 288px;\" width=\"1063\">\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Cost Type<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Typical example<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Production cost<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Raw materials, labor, machine wear and tear<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cost of sales<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Advertising, commissions, shipping<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Business management costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Office supplies, office staff salaries<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Financial costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Bank interest, exchange rate difference<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Proper classification helps businesses easily track, analyze and evaluate the effectiveness of each department.<\/span><\/p>\n<p><b>Attach costs to each department, project, product<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set up separate cost codes for each unit or project.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps to retrieve costs by item \u2192 evaluate specific performance.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cach_quan_ly_chi_phi_phat_sinh_hieu_qua\"><\/span><b>How to manage incidental costs effectively<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Effectively managing incidental expenses is an important part of ensuring that your business or personal finances stay within budget. Here are some ways to manage incidental expenses:<\/span><\/p>\n<p><b>Build a budget and spending limit<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Budget expenses by month\/quarter\/year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set spending limits for each department and project.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Require explanation when exceeding budget.<\/span><\/li>\n<\/ul>\n<p><strong>Accounting software applications and cost management tools<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automate the recording<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track cost fluctuations in real time<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Export analysis reports easily<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Save time \u2013 reduce errors \u2013 make faster decisions.<\/span><\/li>\n<\/ul>\n<p><strong>Compare actual costs and budget periodically<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compare actual costs with planned costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detecting threshold rate, reasons for abnormal occurrence<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Make timely adjustments to operations or expenditures.<\/li>\n<\/ul>\n<p><strong>Cost-effectiveness assessment<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which costs generate clear revenue\/value?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What expenses can be cut \u2013 reduced \u2013 replaced?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ROIC (Return on Invested Capital) or cost\/benefit analysis<\/span><\/li>\n<\/ul>\n<p><b>Establish internal cost control processes<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purchase Request Approval \u2013 Multi-Level Payment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Apply 3-step process: propose \u2192 review \u2192 implement<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Integrate accounting, internal control and operations management<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Nen_tang_Bizzi_ho_tro_%E2%80%9CQuan_tri_chi_phi_kinh_doanh%E2%80%9D_nhu_the_nao\"><\/span><b>How does the Bizzi platform support \u201cBusiness Cost Management\u201d?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/bizzi.vn\/quan-ly-chi-phi\/\"><span style=\"font-weight: 400;\">Bizzi Expense<\/span><\/a><span style=\"font-weight: 400;\"> is a comprehensive expense management software that helps businesses automate financial processes, minimize risks and optimize work performance. With outstanding features, Bizzi Expense helps businesses set up and control budgets more easily than traditional tools such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set up spending policies easily: Allows businesses to set up and customize spending policies for each department or project, ensuring transparency and compliance with financial regulations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Build a smart expense approval process: Support setting up an automatic expense creation and approval process, helping to shorten processing time and ensure accuracy at every step.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999972566\" aria-describedby=\"caption-attachment-999972566\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999972566\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-quan-ly-chi-phi-phat-sinh-la-gi.png\" alt=\"bizzi-management-of-incurred-expenses-what-is\" width=\"1200\" height=\"835\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-quan-ly-chi-phi-phat-sinh-la-gi.png 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-quan-ly-chi-phi-phat-sinh-la-gi-300x209.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-quan-ly-chi-phi-phat-sinh-la-gi-1024x713.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-quan-ly-chi-phi-phat-sinh-la-gi-768x535.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/bizzi-quan-ly-chi-phi-phat-sinh-la-gi-18x12.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999972566\" class=\"wp-caption-text\">Bizzi Expense is a comprehensive expense management software that helps businesses automate financial processes,<\/figcaption><\/figure>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detailed budgeting for departments and projects: Provides detailed budgeting tools, helping businesses allocate appropriate resources and control spending for each department and project.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real-time cost tracking: Allows users to capture costs instantly, providing an overview of the current financial situation, supporting businesses to make accurate and timely decisions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Intuitive cost and budget reporting dashboard: Integrated cost and budget reporting dashboard helps management easily track, analyze, and compare data, thereby developing appropriate strategies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seamless ERP Integration: Bizzi Expense integrates with popular ERP systems, allowing for fast and accurate synchronization of financial data and centralized data management.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><strong>Conclude<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In short, \u201cIncurred costs\u201d is not a completely negative concept for businesses. On the contrary, if we can control the incurred costs well, we can create opportunities to increase the value of products, services or customers.<\/span><\/p>\n<p><a href=\"https:\/\/bizzi.vn\/quan-ly-chi-phi\/\"><span style=\"font-weight: 400;\">Bizzi Expense<\/span><\/a><span style=\"font-weight: 400;\"> is a comprehensive solution that helps businesses control arising costs effectively, optimize company budgets and improve employee satisfaction. Start implementing Bizzi Expense&#039;s arising cost management solution in particular and business costs in general today!<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Unplanned expenses are expenses that arise outside of the original plan, often occurring during the implementation of work, projects, etc.<\/p>","protected":false},"author":56,"featured_media":999972562,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263],"tags":[],"class_list":["post-999972560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999972560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999972560"}],"version-history":[{"count":3,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999972560\/revisions"}],"predecessor-version":[{"id":999973733,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999972560\/revisions\/999973733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999972562"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999972560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999972560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999972560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}