ETF, etc.). The ongoing expense isexpressed as a ratioof the total investment. For example, if you have $1,000 invested in a mutual fund with an expense ratio of 0.05%, then you will pay $50 per year in fees.
Definitions of Cost and Expense Some people use cost interchangeably with expense. However, we use the term cost to mean the amount spent to purchase an item, a service, etc. Some costs are not expenses (cost of land), some costs will become expenses (cost of a new delivery van), and...
更新1: cost系expense的一种or expense系cost的一种?,In principle, there is no difference beeen cost and expenses. Purhcase is the cost of the goods and not related to other operating expenses. Hence, we use cost of purchases for goods purchased for reselling. Expenses are usual...
Is rent expense a period cost or a product cost? What is the difference between book depreciation and tax depreciation? What is the difference between FIFO and LIFO? Related In-Depth Explanations Accounting Basics Accounting Equation Accounting Principles Adjusting Entries Balance Sheet Book...
Your cost of goods sold is actually an expense, but it's not included in the expenses line because the IRS allows you to deduct your cost of goods sold amount from your taxable earnings. The difference between these two lines is that the cost of goods sold includes only the costs ...
'Affect' vs. 'Effect' Using Bullet Points ( • ) Why is '-ed' sometimes pronounced at the end of a word? What's the difference between 'fascism' and 'socialism'? More Commonly Misspelled Words Popular in Wordplay See All Top 12 Sophisticated Compliments ...
Cost refers to “the expense incurred for making a product or service that is sold by a company,” according to Investopedia.“The cost of producing a product has a direct impact on both the price of the product and the profit earned from its sale.” So cost is a measure of what the...
aA sale has two aspects: a revenue aspect and an expense aspect. Revenue results when the sale is made, whether or not cash is received at that time. The related expense is the cost of the merchandise that was sold. The income of a period is the difference between the revenues and exp...
The cost of producing a product has a direct impact on both the price of the product and the profit earned from its sale. The difference between the price paid and costs incurred is profit. Cost vs. Price Cost is typically the expense incurred for creating a product or service a company ...
A fixed cost is an expense that a company is obligated to pay, and it is usually time-related. A prime example of a fixed cost would be the rent a company pays for office space and/or manufacturing facilities on a monthly basis. This is typically a contractually agreed-upon term that...