Difference and connection between cost and expense.

The differences between costs and expenses are as follows:

1, different concepts.

Expenses are the total outflow of economic benefits that have nothing to do with the distribution of profits to owners in the daily activities of enterprises, which will lead to the reduction of owners' rights and interests.

Cost is the value category of commodity economy and an integral part of commodity value. If people want to carry out production and business activities or achieve certain goals, they must spend certain resources, and the monetary expression and objectification of the resources spent is called cost. Moreover, with the continuous development of commodity economy, the connotation and extension of the concept of cost are constantly changing and developing.

2, the content is different

Cost refers to the price of production factors used in production activities, and cost is also called production cost. The monetary expression of the value of materialized labor and necessary labor consumed by enterprises for producing goods and providing services is an important part of commodity value. Cost is an economic category of commodity economy. The composition of cost should obey the needs of management and develop with the development of management.

The cost components stipulated by the state mainly include: raw materials, materials, fuel and other expenses, which are expressed as the value of the labor objects consumed in commodity production; Depreciation expense represents the value of the labor object that has been consumed in commodity production; Wages represent the value created by producers' necessary labor.

The expenses mentioned in the enterprise income tax law refer to the sales (operation) expenses, management expenses and financial expenses incurred by taxpayers for producing and operating commodities and providing services. Expenditure is the method of payment when costs and expenses actually occur.

3. The calculation period and calculation basis are different.

The calculation period of expenses is related to the accounting period, and the cost of products is generally related to the production cycle of products. The calculation of expenses is based on direct expenses and indirect expenses. Product cost is based on a certain cost calculation object.