Cost: Cost is defined as the “Value” of the sacrifice made to acquire goods or services measured in monetary terms by the reduction of assets or increase of liability at the time of benefit acquired.
The cost incurred is for present (Expired Cost) or future (Unexpired Cost) benefits.
Expenses: when the benefits of unexpired cost are utilized the cost become expenses. An expense is cost that has given a benefit and is now expired.
Loss: In certain instance the goods or services purchased become value less without having provided any benefit. These costs are called losses and appear on the income statement as a deduction from revenue in the period that the decrease in value occurred.
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