ACC 928 Lecture Notes - Lecture 2: Cost Estimate, Fixed Cost, Variable Cost
Document Summary
Cost v. s expense you go buy a phone and it will last you for 3 years this will be. Expense is what you incurred, and is needed to generate revenue. When inventory is being sold it will be cost and it will convert to cost of good sold. Building is a cost the conversion for this is amortization expense. A cost is a sacrifice you make to generate revenue in the future. A cost is an asset and it goes in the balance sheet. A cost is the value of economic resources (e. g. , money) sacrificed or used up to achieve a particular objective (e. g. , produce a product or perform a service). Following are some examples of costs that may be incurred by a business organization: on jan. 1, 2007 abc co. purchased a machine for ,000 to be used in producing a certain product x .