Cost is the product of the commodity economy, a category in the commodity economy, and the main component of commodity value. With the development of social economy and the improvement of enterprise management requirements, the connotation of cost concept is constantly developing and changing. Cost and expense are a group of concepts that are both closely related and have some differences. Cost refers to the cost of producing a certain product, completing a certain project, or doing something, that is, the total cost incurred, which is the cost of objectification. Expenses refer to the consumption of assets owned or controlled by the enterprise in the process of obtaining current income, and are the costs that match the income during the accounting period.
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