Financial outlay is a term used to describe the money spent by an individual or organization. It includes both EXPENSES and COSTS, which are two different types of financial outlay. EXPENSES refer to money spent on goods and services that are used up or consumed in the process of producing income. COSTS, on the other hand, are money spent on items that are not consumed in the process of producing income, such as investments or capital expenditures. Financial outlay is an important concept in accounting and finance, as it helps to measure the profitability of a business or individual.