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Cost vs Expense

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Cost is a general term that can be applied to any business expenditure or loss. Expense is specific to situations such as travel or utility bills that relate to consumption of something.


Office supplies such as paper are considered expenses as they are quickly consumed. Office equipment such as a computer is considered a cost as it endures as an investment for a period of time.
Overview: Cost vs Expense
Cost Definition
An expenditure or loss.
Expense Definition
An expenditure that is consumed immediately such as a meal or electricity.
Related Concepts
Next: Business Costs
More about business expenses:
Business Costs
Business Supplies
Business Travel
Cost Of Goods Sold
Cost Vs Expense
Employee Benefits
Fixed Expenses
Operating Expenses
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