Wednesday, 25 September 2013

The difference between the (Cost) and Expense

Assalamualaikum. Good day mate. This article about the difference between the cost (Cost) and Expense (Expense). Previously there may be between my friend who is still confused Difference between Cost (Cost) and Expense (Expense). In accounting often we encounter the word costs and expenses. If that were previously considered the same, the actual costs and expenses are different  .. Here Differences between Cost (Cost) and Expense (Expense).

Cost or Cost is something that we spend or we sacrifice the hope we will benefit economically or future benefits for example for the purchase of fixed assets, to spend money to purchase these assets then there is a cash account that we spend while the effect of the purchase of these assets we expected economic benefits of the asset in the future. Suppose the motor vehicle as there are economic benefits to accelerate the delivery of goods.

As for the concept of expense itself is something that we sacrifice or we incur in order to obtain such revenue accounts listed in laporn profit and loss. Load electricity & water, depreciation expense. etc..

umpteen articles about the difference between the (Cost) and Expense  might help if only you who are looking for this article. may be useful. if there are questions to ask you to fill in the comment box below. Wasaalamualaikum :)


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