The difference between expenditure, expense and cost

1.	The difference between expenditure, expense and cost
Answer» \tExpenditure refers to any outlay of cash or other consideration. We say ‘the business’s expenditure for supplies was 1200 dollars’, which means that 1200 dollars were spent on supplies.\tA cost refers to the amount given to acquire an asset. If an expenditure is made to acquire supplies, then the cost is the amount paid in cash to acquire those supplies –\xa0for example\xa0of 1200 dollars.\tAn\xa0expense\xa0refers to decreases in economic benefits. Because an expense is always reported on the\xa0statement of comprehensive income, it is a cost that has already been consumed – ‘expired’ – and therefore has no future value to the business.

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