0
The difference between a cost and an expense lies on the matter of distinguishing and separately recognizing the used, utilized and expired portion of the cost, being that part is what we called an expense. An expense can also be described as a cost forgone since it is already been utilized and used. The expense is also recognized only in the income statement rather than in the balance sheet since utilization is recognized for a certain period of time. On the other hand, an unused or an unexpired cost is reported in the balance sheet as at a certain point of time. A costmight be an expense or it might be an asset. An expense is a cost that has expired or was necessary in order to earn revenues.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is the difference between value and cost?
value is the market price of an item cost in the expense incurred to obtain an item
What is the difference between opportunity cost and marginal cost?
opportunity cost refers to the satisfaction of ones want at the expense of another want while marginal cost is the addition to total cost as a result of increasing output by one unit.
What is the difference between variable cost and stepped cost?
Step Cost remains fixed for certain range of expense and then increases while variable cost change with change in every unit of product.
What is difference between purchases and expenses?
Expenses means money spent or cost incurred in an entity,s effort to generate revenue. it represent cost of doing business. Purchase means cost of buying goods/ services.It result in increase in expense. Thus expense is a wider term which includes purchase in it.
Is sales revenue an expense or asset?
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
What is the difference between value and cost?
value is the market price of an item cost in the expense incurred to obtain an item
Difference between operating expense and direct expense?
Operating expense is the cost of running your day-to-day business. Operating expenses include rent, utilities, supplies, and insurance. Direct expense is an expense that varies with changes in the cost object. Direct expenses include materials needed to manufacture a product, freight charges to transport product, and taxes related to the sale of goods.
What is the difference between opportunity cost and marginal cost?
opportunity cost refers to the satisfaction of ones want at the expense of another want while marginal cost is the addition to total cost as a result of increasing output by one unit.
What is the difference between variable cost and stepped cost?
Step Cost remains fixed for certain range of expense and then increases while variable cost change with change in every unit of product.
What is the difference between revenue and expense called?
Net Income
What is difference between purchases and expenses?
Expenses means money spent or cost incurred in an entity,s effort to generate revenue. it represent cost of doing business. Purchase means cost of buying goods/ services.It result in increase in expense. Thus expense is a wider term which includes purchase in it.
Is sales revenue an expense or asset?
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
What difference between cost and costing?
difference between cost and costing
What is the difference between cost and list price?
whats the difference between cost and list?
What is the difference between differential cost and incremental cost?
There is no difference
What is difference between an asset and an expense?
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
What is the difference between direct expense and indirect expense in financial account?
give the full chart of the direct and indirect expenses . detail about this
