Although the terms cost and expense are often used synonymously there is a difference between them. A cost can be an asset or an expense whereas an expense is:

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An expense refers to the consumption or loss of resources that will result in a decrease in equity. It is not dependent on whether future economic benefits have expired or whether it is paid out in cash. While expenses may be used to run the business, this is not the defining characteristic of an expense.

Although the Terms Cost and Expense Are Often Used Synonymously