There are many differences between costs and costs, and many junior financial partners ask how costs are distinguished from costs. I'm here today to explain
Costs and costs are divided into broad and narrow areas:
Costs and costs in a broad sense are meant to cover everything that an enterprise spends to sustain its operations。
A narrow cost refers to the main operating cost or operating cost, as stated in accounting, which does not include costs, while costs include three broad categories of sales costs, management costs and financial costs:
Management costs are incurred to coordinate the costs incurred by the orderly operation of the enterprise。
Sales costs are those incurred in selling products or services to customers, such as market costs, channel costs, etc。
Financial costs are those incurred in the course of the financing of an enterprise, such as interest on bank loans。
Difference between costs and costs:
1. Different content
Costs include management costs, sales costs and financial costs. The cost of industrial enterprise products only includes the cost of producing a certain type or quantity of finished products. Cost can be understood as the cost of achieving a particular function of a product or service. One hotel, for example, has the function of providing accommodation and catering services. To achieve the accommodation and catering functions, the costs of rent, manpower, food, furniture, etc. That must be incurred by the hotel are the necessary costs of the hotel。
2. Different calculation periods
The costing period is linked to the accounting period, and the cost of the product is generally linked to the production cycle of the product。
3. Different objects
Cost is calculated by economic use and the cost of the product is calculated for the product。
4. Different bases of calculation
Cost calculations are based on direct and indirect costs. The cost of the product is based on a certain number of costing objects。
