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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 | Benefits | Building | Business Services | Communication | Components | Computers | Computing Infrastructure | Construction | Consulting | Contractors | Energy | Entertainment | Equipment | Franchise Fees | Freight & Delivery | Hourly Wages | Incentives | Insurance | Interest and Bank Charges | Inventory Write-down | Land | Land Improvements | Legal Costs | Licences | Machines | Maintenance & Repair | Materials | Meals | Outsourcing | Partner Commissions | Parts | Pension | Permits | Professional Services | Rent | Salary | Sales Commissions | Software | Supplies | Taxes | Training | Transaction Fees | Travel | Utilities | Vehicles |
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. |
Type | | Definition | Expenditures that are paid out by a business. | Primary Types | | Related Concepts | |
Business Costs
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