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47 Examples of Business Costs

 , updated on May 17, 2023
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 Expense

The 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.
Overview: Business Costs
Type
DefinitionExpenditures that are paid out by a business.
Primary TypesCapex
Opex
Related Concepts

Business Costs

This is the complete list of articles we have written about business costs.
Activity Cost
Business Equipment
Capex
Capital Improvement
Cost Of Living
Expenses
CAC
Fixed Costs
Friction Cost
Employee Costs
Holding Costs
Intangible Cost
Operating Cost
Operating Expenses
Opex
Legacy Costs
Outlay Cost
Lifetime Cost
Overhead Costs
Menu Costs
Relevant Cost
Shrinkage
Sunk Costs
Tangible Cost
Operational Costs
Travel Expenses
Opportunity Cost
Variable Costs
Prospective Cost
Switching Costs
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Customs Duty

A tax on imports and exports that serves as a hidden consumption tax.

Excise Duty

An inland tax on the production or sale of goods.

Materials

A list of common types of materials.

Overhead Costs

Business expenditures that can't be directly related to revenue.

Relevant Cost

A definition of relevant cost with examples.

Sunk Costs

A business or investment expenditure that has already been made that can't be recovered.

Business Expenses

A list of common types of business expenses.

Assets

A definition of asset with a few examples.

Operating Cost

A list of common operating costs.

Cost Reduction Examples

Common examples of cost reduction.

Cost Structure

Detailed examples of how to map out the cost structure of a business.

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