The Differences Between Cost And Expense
Skip to content
Program Studi Akuntansi | Fakultas Ekonomi dan Bisnis UMA
youtube
instagram
id Indonesian
en Englishid Indonesian
JURUSAN AKUNTANSI TERBAIK DI SUMUT
Call Support 061-822-5602
Email Support doc_akuntansi@uma.ac.id
Location Jl. Setia Budi NO.79 B, Medan
  • Home
  • PROFIL
    • Akreditasi
    • Fungsionaris
    • Struktur
    • Visi Misi
  • AKADEMIK
    • INFORMASI AKADEMIK
      • AKADEMIK ONLINE
      • E-LEARNING
      • JURNAL
      • LAPORAN AOC
    • JADWAL AKADEMIK
      • JADWAL KULIAH
      • JADWAL PRAKTIKUM
      • JADWAL UTS
      • JADWAL UAS
      • JADWAL SEMESTER ANTARA
      • JADWAL SEMINAR
      • JADWAL WISUDA
    • KALENDER AKADEMIK
    • KURIKULUM
      • Semester I
      • Semester II
      • Semester III
      • Semester IV
      • Semester V
      • Semester VI
      • Semester VII
      • Semester VIII
    • EKIVALENSI MATA KULIAH
    • DOSEN PENASEHAT AKADEMIK
  • AKTIVITAS PRODI
    • KEGIATAN PRODI
    • PRESTASI PRODI
  • MAHASISWA
    • BEASISWA
    • MAGANG
    • SISTEM INFORMASI
      • DATA MAHASISWA
      • BLOG MAHASISWA
      • JURNAL MAHASISWA
      • AOC
      • ELEARNING
      • APIK
      • KUOTA
      • OPAC
      • WEBMAIL
      • SIPRODI
    • Prestasi Mahasiswa
  • DOSEN
    • Data Dosen Prodi
    • BLOG DOSEN
    • Aktivitas Dosen
    • prestasi dosen
    • JURNAL DOSEN
    • AOC
    • RKTS
    • RPS
    • TKTD
    • ELEARNING
    • OPAC UMA
    • WEBMAIL
  • ARSIP
    • DOKUMEN PRODI
    • PENGUMUMAN
  • ALUMNI
    • TRACER STUDY
    • DATA ALUMNI
    • LAYANAN ALUMNI
    • AKTIVITAS ALUMNI
    • PRESTASI ALUMNI
  • LABORATORIUM
    • INFORMASI LABORATORIUM
    • APLIKASI LABORATORIUM
  • Hubungi Kami

The Differences Between Cost And Expense

Home > News > The Differences Between Cost And Expense

The Differences Between Cost And Expense

Posted on May 31, 2021 by admin
0

Most people think that cost and expense have the same meaning, and technically they do. However, when it comes to business, cost and expense have different meanings. Cost refers to the cost of production and operations. Expense refers to fixed monthly expenses such as rent, utilities, and other fixed expenses.

Cost is an estimated amount that people pay or spend to shop for something. It can be specific such as someone ask one Audi cost in America from the showroom owner. People use this term as a penalty, such as considering missing event costs. We use the cost of a one-time event.

Businesses use cost for pricing strategy and marketing. They define the term expense as something that belonged to business taxes and balance sheets. The term expense implies something more formal as well. The general expense’s definition in the business world is similar to the term cost.

It is the amount that people should use for regular expenditures and their related payments. The price that the seller or producer offers links to the product cost. Business loss and profit statements have a great impact on expenses.

An expense of something relates to ongoing payment such as marketing, rent, utility, payroll. You need a specific location for product selling and revenue production. Businesses always consider the expense of money to produce high revenue. In this way, you will have to bear advertising expenses to get clients and business phone calls expenses.

If you wish to have a retail shop, you will have to spend on utilities and rent expenses. If you need to get maximum traffic on your eCommerce website, you will have to spend on web developers, designers, and search engine optimization experts.

The term expense doesn’t belong to the value of something or an asset. Cost is purchasing a property as it is a that you pay for the first time. The interest payment of that asset’s debt will be your expense. Also, people use the word payments when they use cost and expense terms together.

Cost Vs. Expense

Businesses spend on expenses to generate the highest revenue in the market, as you can deduct them on your business tax return. As a result, they leverage a significant reduction in their income tax bill. In this way, businesses must be necessary and ordinary to the after-tax business deduction.

Depreciation expense is deductible business experience. People need the cost of their assets to determine this expense every year. But there is no effect of cost on taxes. You don’t write a check for depreciation as people consider it a non-cash expense. But, as a business owner, you can use it to decrease the income tax rate.

Expenses Vs. cost concerning accounting

In business matters, accounting types define many different instances by using the term cost. For example, an accountant spends variable and fixed costs where time and costs are linked with services and products. They do this due to analyze profits and proper budgets.

Cost of purchase products

It is a calculation that businesses do at the end of the accounting year to sell products. Purchase cost includes many different kinds of costs.

Direct shipping and making products cost

It includes resale products, raw materials for making products, shipping, and packaging products to clients. There is indirect cost such as payment of supervision, storage costs, labor for the warehouse or factory.

Cost and Accounting

For accountants, the cost is a specific reference for business and depreciated assets. The cost of a property or cost basis adds each cost to purchase, deliver and teach employees in its use, and it also sets up the assets.

For example, Businesses use cost to establish the foundation for depreciation and other factors for tax. On business accounting balance sheet shows up the cost of assets. You will always see the original cost then, you will subtract accumulated depreciation. It includes the result of the book value of that asset. Businesses combine all their assets for the use of a balance sheet.

Expenses and accounting

In accounting, people use the term expense to identify profit. You will say calculated profit as Income Minus Expenses Equals Profit. Two types of expenses are under the consideration of fixed and variable. You must pay your monthly fixed expenses if there are no sales with the level of sales changes the variable expenses.

Source: https://www.completecontroller.com/

Related

Share

Tags: business deductions after tax, costs and expenses, costs vs expenses, difference between costs and expenses, estimated amount, expenses, income tax rate, marketing, money expenses, product purchase costs, strategy

PENCARIAN

ARTIKEL TERBARU

  • 7 Alasan Kenapa Perlu Memilih Jurusan Ekonomi Pembangunan
  • Pengertian Jurusan Ekonomi Pembangunan
  • Objek dan Subjek dari PNBP
  • PNBP adalah Penerimaan Negara Bukan Pajak, Apa Saja Jenisnya?
  • Fungsi Akuntansi Manajemen

KALENDER

May 2021
S M T W T F S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Mar   Jun »

KAITAN UMA

 

 

KAMPUS I
Jalan Kolam Nomor 1 Medan Estate / Jalan Gedung PBSI, Medan 20223
(061) 7360168, 7366878, 7364348. Call Canter : 0822-6777-1313, 0822-6777-1314, 0813-7095-7775
(061) 7368012
univ_medanarea@uma.ac.id
KAMPUS II
Jalan Sei Serayu Nomor 70 A / Jalan Setia Budi Nomor 79 B, Medan 20112
(061) 8225602, 8201994 HP : 0811 607 259
(061) 8226331
ekonomi@uma.ac.id

PENGUNJUNG WEBSITE

  • 2
  • 586
  • 379
  • 10,869
  • 45,293
  • 594,178
  • 351,256
Copyright 2016-2022 © by PDAI Universitas Medan Area