Business costs are any expenditures that are paid out by a business. These can be classified as either capital expenditures that represent a long term investment in your business or operating expenditures that go towards the day-to-day functions of your business such as production, sales and administration. The following are examples of business costs.
Advertising & Promotion
Bad Debt Expense
Freight & Delivery
Interest and Bank Charges
Maintenance & Repair
Cost vs ExpenseThe difference between a cost and an expense is that an expense can be immediately deducted from revenue to calculate earnings. A cost can potentially represent an investment in the business that must be depreciated or amortized as expenses over many years. In some cases, costs can never be expensed where they don't lose any value. For example, the cost of land can't be depreciated and expensed because land doesn't lose its value over time. Generally speaking, costs that are considered opex can be expensed and costs considered capex are depreciated or amortized over time.
This is the complete list of articles we have written about business costs.
If you enjoyed this page, please consider bookmarking Simplicable.
An overview of cost of living with examples.
The definition of customs duty.
An inland tax on the production or sale of goods.
A list of common types of materials.
An overview of overhead costs.
A definition of relevant cost with examples.
A business or investment expenditure that has already been made that can't be recovered.
A list of common types of business expenses.
A definition of asset with a few examples.
A list of common operating costs.
A list of common types of business cost.
A principle of financial accounting.
Common examples of cost reduction.
Simplicable is a modern encyclopedia that has been updated daily since 2010.
A list of interesting business theories.
A definition of knowledge work with examples.
TrendingThe most popular articles on Simplicable in the past day.
Recent posts or updates on Simplicable.
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.