Definitions (2)
Related Terms
1. Accounting: (1) Tax-free amount (such as traveling allowance) subtracted from an income to arrive at taxable income. See also deduction. (2) Amount paid to employees as part of their salary package, or to defray their out of pocket expenses incurred on behalf of the firm. (3) Amount deducted from an invoice as an incentive for a large order, or to compensate the buyer for an expense or mistake.
2. Manufacturing: Acceptable increment or wastage included when estimating time or material for a production or other process.

Use 'allowance' in a Sentence

My dad told me that I had to mow the lawn, or they would cancel my allowance and I would not be able to hang out with my friends anymore.
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The allowance was exactly what we had hoped for as this made our budget work and go according to plan.
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You may get an allowance when you take a business trip but you will need to keep good records of all that you spend.
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