Cost(s)
Cost is the expenditure required to create and sell products and services or to acquire assets. When sold or consumed, a cost is charged to expense. In the case of an asset, the charge to expense could be significantly deferred. The cost concept underlies the transition of assets from the balance sheet to expenses in the income statement. When a cost is designated as an expense, it can be assigned to a wide range of possible expenses, such as:
- Cost of goods sold
- Selling expenses
- General and administrative expenses
- Financing costs [AccountingTools].
In accounting, the term cost refers to the monetary value of expenditures for services, supplies, raw materials, labor, products, equipment, etc. Cost is an amount that is recorded in bookkeeping records as an expense [Reviso].
Cost definition. AccountingTools. Retrieved from: https://www.accountingtools.com/articles/cost
What is Cost? Reviso. Retrieved from: https://www.reviso.com/cost/