Kulude

Kulud (Estonian for expenses) refer to the outflows of resources a business incurs in the course of its operations. In accounting practice, kulud are recognized on the income statement in the period when the related goods or services are consumed or when the asset is used, following accrual accounting. They reduce profit and, where applicable, taxable income, subject to jurisdiction-specific rules.

Kulude analysis is commonly organized by origin and behavior. By cost object, they can be direct (otsed kulud) tied to a specific product, project, or department, or indirect (kaudsed or üldkulud) that support multiple objects. By behavior, kulud can be fixed (püsikulud), which do not change with activity level within a relevant range, or variable (muutuvad kulud), which rise or fall with production or sales volume. Typical examples include wages, rent, utilities, depreciation, raw materials, and marketing.

In budgeting and managerial accounting, kulud are tracked to inform pricing, profitability analysis, and cost control. Cost allocation methods distribute indirect kulud across products or services, while unit cost calculations determine the cost per item. Cost information supports decision-making, performance measurement, and strategic planning.

In financial reporting and taxation, kulud are used to compute profit and are often subject to jurisdiction-specific rules about deductibility for tax purposes. Proper understanding of kulud and their behavior helps businesses manage resources, evaluate efficiency, and set sustainable financial targets.