The terms 'cost' and 'expense' are commonly used words in the fields of business, economics and accounting. Most often these terms can be used interchangeably without issue. In accounting however, the terms have quite different meanings. Basically, sacrificing resources (money) to acquire products is called a cost. Using up the value of those products to generate revenue for a business is called an expense.
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Peter John Baskerville
onto Basic Accounting Concepts August 11, 2011 6:27 AM
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