I would like to ask: What is the difference between cost expenses and profit and loss expenses?

The relationship between cost and expense is two parallel concepts, and they are also two concepts that are often confused, although they are related to each other, but in fact there is an essential difference between them. Costs are related to a specific asset or service of the enterprise, while expenses are related to a specific period; Cost is a measure of the cost paid by a business to acquire an asset or service, while expense is the amount of resources expended to obtain revenue. Costs cannot be offset against income and can only be reflected in the balance sheet in the form of assets, while expenses must be offset by income for the current period and reflected in the income statement. But costs can be converted into expenses through the process of "capitalization" and then through the process of consumption (i.e

cost asset expense), such as the enterprise in order to carry out production and business activities, must purchase a certain equipment and incur expenditure, form the purchase cost of fixed assets, the equipment is installed, delivered for use and constitute a fixed asset (cost asset) of the enterprise. If the equipment is used to produce products, the depreciation of the cost of fixed assets according to a certain method is included in the production cost of the product (asset cost) in each period; If the equipment is used for management purposes, the depreciation expense accrued in each period is included in the administrative expense (asset expense) of each period. Another example is that in order to produce products, enterprises must purchase materials and incur expenditures, thus forming the procurement cost of materials.

After the material is inspected and received in the warehouse, the procurement cost is converted into the inventory cost (cost asset) of the enterprise, and if the enterprise receives materials for office, the inventory cost is converted into management cost (asset cost); If the materials are used to produce the product, the cost of inventory is converted into the cost of production of the product (capital cost), the cost of production is converted into the cost of inventory (cost asset) when the product is completed and inspected, and the cost of inventory is converted into the cost of sales (asset cost). It is important to emphasize here that costs cannot be directly converted into expenses (i.e.

cost), expenses are less likely to be converted into costs (i.e., cost costs), and the so-called "objectification of expenses is costs" is contrary to the concept of expenses. For a long time, some people have taken advantage of people's misunderstanding of the relationship between costs and expenses to achieve financial fraud.

For example, the expenses that should be included in the cost of assets are included in the expenses or the expenses that should be included in the expenses are included in the cost of assets, deliberately confusing the boundary between the cost of assets and expenses, so as to achieve the purpose of adjusting profits at will. It must also be made clear here that costs are objectified expenses, not objectified expenses, and expenses without objects (except for income expenses, debt service expenses, equity expenses) can only be treated as losses.

Similarly, if there is an object of expenditure, but the unreasonable and unnecessary expenditure should still not be objectified as a cost, but should be treated as a loss.

Cost expenses: They are used to account for the occurrence and aggregation of costs, the costs that directly constitute products or provide services, and are expenses with specific attribution objects, such as production costs, manufacturing expenses, labor costs, etc.

Profit and loss expenses: There is no directly attributable object and cannot be included in the expenses of specific products or services provided, which constitute the components of profits, such as main business costs, other business costs, business taxes and surcharges, sales expenses, management expenses, financial expenses, non-operating expenses, etc.

Although the two are classified differently according to their attribution, the direction of accounting treatment is the same and has the same direction.

To put it simply: cost expenses refer to expenses that are directly related to the relevant assets or products, and cost expenses should be included in the cost of the relevant assets or products; Profit and loss expenses refer to expenses that are not directly related to the underlying asset or product, while profit and loss expenses are directly included in the profit or loss for the current period.

The difference between profit and loss expenses and cost expenses: different meanings, different uses.

First, the meaning is different:

Cost expenses are first transferred to the cost of the product, and then transferred to the operating cost with the sales of the product. Profit and loss expenses are included in profit or loss for the current period.

i.e. administrative expenses, selling expenses, etc.), to the income statement.

Second, the use is different:

Profit and loss expenses are to be recorded in the current profit or loss and carried forward. Cost expenses are cost-based. In other words, profit and loss expenses are expenses during the write-off period.

recorded, and the marginal return of the unit product will be affected after the cost fee is recorded.

Account: Enterprise profit and loss account.

It refers to the account of accounting for the income obtained by the enterprise and the costs and expenses incurred, which specifically includes:

Income accounts: main business income, other business income, investment income, fair value profit and loss of short auctions, etc.

Expense accounts: main business costs, other business costs, asset impairment losses.

Credit impairment losses, taxes and surcharges.

Selling expenses, administrative expenses, financial expenses, income tax expenses, etc.

Gains included in the current profit: non-operating income, gains and losses on disposal of fixed assets.

Loss directly credited to current profit: non-operating expenses.

Gains and losses on disposal of fixed assets.

The above content refers to: Encyclopedia - Profit and Loss Accounts.

Cost expenses are first transferred to the cost of the product, and then transferred to the operating cost with the sales of the product.

The profit and loss expenses are included in the profit and loss of the current period (i.e., the management expenses of the journey, the sales expenses, etc.) and are transferred to the income statement.

Personally, I understand that profit and loss expenses should be recorded in the current profit and loss and transferred away. Cost expenses are cost-based. In other words, the profit expense of the loss is recorded before the write-off period, while the cost expense will affect the marginal return of the unit product.

What is the difference between cost and expense and profit and loss? - The cost category is not directly transferred to the profit or loss of the current period. The profit and loss category must be transferred to the current profit or loss.

There is no balance at the end of the month.

Cost accounts are accounting accounts that reflect costs and expenses, are used to account for the occurrence and collection of costs, and provide cost-related accounting information. The different contents of costs and expenses can be divided into production costs, manufacturing expenses, labor costs and R&D expenditures.

When it actually occurs, it is included in their respective accounts, and when it is carried forward at the end of the period, manufacturing expenses, labor costs and R&D expenses are carried forward to production costs.

Profit and loss accounts.

A kind of accounting account, which is used to calculate the "profit of the year", including income accounts and expense accounts; At the end of the period (month-end, quarter-end, year-end), the accumulated balance of such accounts needs to be transferred to the "Profit of the Year" account, after which the balance of these accounts should be zero. Classify.

Enterprise profit and loss account refers to the account of accounting for the income obtained by the enterprise and the costs and expenses incurred, which specifically includes:

Income accounts: main business income, other business income, investment income, fair value change profit and loss, etc.

Expense accounts: cost of main business, other business costs, asset impairment loss, business tax and surcharge.

Selling expenses, administrative expenses, financial expenses.

income tax expense, etc.

Gain directly included in current profit: non-operating income.

Loss directly credited to current profit: non-operating expenses.

Don't be afraid to maliciously brush points.

Persist in the pursuit of truth and true knowledge.

Accounting accounts are divided into 5 categories, assets, liabilities, owners' equity, costs, profits and losses, the expenses you are talking about are actually included in the profit and loss class, such as sales expenses, management expenses, financial expenses, etc., the balance of all profit and loss accounts at the end of the month will be zero, it will offset the profit, and the cost account is a finished product that directly increases the product.

1. The connection is that the cost account reflects the cost and expenditure, is used to calculate the occurrence and collection of costs, and provides cost-related accounting information. The different contents of costs and expenses can be divided into production costs and manufacturing expenses. When actually incurred, it will be transferred to the corresponding main business or other business costs.

2. The difference is that the cost account occurs in the production process and is finally converted into the inventory goods, while the main business cost is transferred in the sales process, and there is no such part of the cost without sales or other behaviors, and the final main business cost is transferred to the profit of the current year, affecting the profit and loss.

The cost account accounts for the total consumption incurred due to the production of the product, that is, the total input of the constituent product, and the final amount of the account will be transferred to the inventory with the warehousing of the product.

The main business cost in the profit and loss account is incurred due to the sales behavior, which is calculated by the sales quantity and the average inventory unit cost and transferred from the inventory goods, which is an accounting element to calculate the company's operating results in a certain period, and it is also an accounting element that constitutes the income statement.

The difference between cost accounts and profit and loss accounts is **, which type of accounting elements do they belong to? If you don't know much about this part of the knowledge points, let's learn it with the deep space network!

Cost and profit and loss accounts.

Profit and loss account, a kind of accounting account, this kind of account is for the purpose of accounting for the "profit of the year", including income accounts and expense accounts; At the end of the period (month-end, quarter-end, year-end), the accumulated balance of such accounts needs to be transferred to the "Profit of the Year" account, after which the balance of these accounts should be zero.

This type of account has a certain asset nature. It is an asset, and from this point of view, it is an imitation bridge with the nature of an asset. However, from the perspective of the six elements of accounting: assets, liabilities, equity, income, expenses, and profits, it cannot be said that costs belong to assets.

What's the difference?

1. The cost account is related to the production link, and the expense account is related to the accounting period in which the expense is generated.

2. There can be a balance at the end of the cost account, and there must be no balance at the end of the profit and loss account, because it will be carried forward, which is the most obvious difference between the two.

3. The cost is allocated to the expense, and the profit and loss includes the expense.

What accounting elements do the cost and profit and loss accounts belong to?

The elements of business accounting are divided into six categories, namely, assets, liabilities, owners' equity, income, expenses, and profits.

Assets, liabilities and owners' equity are reflected in the balance sheet, and income, expenses and profits are reflected in the income statement.

The cost accounts are eventually carried forward to the inventory of goods, reflected in the cost of products, and reflected in the assets, while the profit and loss accounts have no balance at the end of the period, and all are carried forward to the current year's income statement and reflected in the income statement.

One: Differences. Cost accounts are related to the production process, including production costs, manufacturing costs, labor costs, and R&D expenditures, which are for a certain product or a certain project.

However, expense accounts are related to the accounting period in which the expenses are incurred, including selling expenses, administrative expenses, and financial expenses, and are not related to specific products, but only to the accounting period.

The cost is allocated to the expense, the profit and loss includes the expense, the cost of the product can be calculated to be included in the inventory is the asset, the factory is the cost accounting details, the cost of sending and receiving, the collection and distribution and the period, product, department and other beneficiary objects, while the asset is formed before, and the cost is the current is the difference.

There can be a balance at the end of the cost account, and there must be no balance at the end of the profit and loss account, because it will be carried forward and carefully discarded, which is the most obvious difference between the two.

2. Cost accounts have certain asset properties. It is an asset, and from this point of view, it has the nature of an asset. However, if we look at the six elements of accounting: assets, liabilities, equity, income, expenses, and profits, it cannot be said that costs belong to assets.

The cost account belongs to the asset element, and the cost is the embodiment of the value consumed by the enterprise in producing products and providing labor services. Cost accounts occur during the production process and are eventually carried forward to the inventory of goods, which are reflected in the assets. The cost account is an account set up for calculating the cost of the product, and its debit amount is the cost of the aggregate cost, and the credit amount is the transferred out of the collected cost and expense, and if there is no product at the end of the period, there is generally no balance.

Profit and loss accounts are accounts related to income and expenses. The profit and loss account can be distinguished between "loss" and "profit", and the so-called "loss" refers to costs, expenses, and taxes; "Profit" refers to various incomes, subsidies, investment income, etc., the former debit record increases, the latter credit record increases, at the end of the period, from the opposite direction to the "current year's profit", each profit and loss account at the end of the period has no balance. There is no balance at the end of the profit and loss account, and all of them are carried forward to the income statement of the current year and reflected in the income statement.