Difference between charges and expenses?

Discussion in 'CA1' started by Dodgeball, Oct 27, 2014.

  1. Dodgeball

    Dodgeball Member

    Hi everyone

    This may seem like a silly question, but what exactly are the differences between charges and expenses, and when would you use which in answering a question?

    I did Question 9.2.ii of the Q&A bank and stated that the expenses could have been higher than expected. Memo says "net invested contributions being less than expected due to higher charges"

    Thanks in advance
     
  2. Oxymoron

    Oxymoron Ton up Member

    Charges are levied by the provider (an income) - while expenses are incurred by the provider. There is a section in chapter 10 contract design.
     

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