Nature of Expenses – Institutional Approach

The Article covers theoretical ideas about the nature of expenses. For reaching this objective the views scientists dealing with these issues have been analyses in the research, the answer has been given to the question about the nature of expenses and content of their definitions has been reasoned, their definitions have been systematized in regulatory and official methodological accounting provisions. Based on the scientific and regulatory literature review it has been found that already existing approaches to understanding the cost is a mere reflection of the 'classical' functional-and-cost based approach to the logic of their formation and do not highlight any behavioral-and-motivational aspects that affect the volume of expenses and the alternative of using already available resources and search for ones the company needs. Notably, these aspects are the objects of a significant part of current research in the field of business and accounting. In accordance with the above the attempt has been made to substantiate a new approach to understanding the costs nature which is based on the provisions of the institutional economic theory and the concept of transactions.