EXPENSE

AND COST
Oscar Cubillos Delgado, Ximena Escalona Ángel, Valentina Rojas
Corredor, Natalia Monroy Rodríguez, Leonardo Vanegas García,
Santiago de la Cruz, Diana Bohórquez y Luisa García.
DIFFERENCES BETWEEN
COSTS AND EXPENSES
Cost originates at the factory,
while expense originates from
administration.
The cost is closely related to the
production and manufacturing
process of the product.For its
part, the expense is related to
the process of marketing,
administration and financing of
the operations carried out in the
company.
The costs are part of the value of
the product. While the expenses,
no.
The costs are incorporated into
the asset, along with the finished
products.Expenses, however, are
recorded directly as a loss within
the Profit and Loss Statement.
WHAT IS A EXPENSE?
An expense is all the economic factors
that we do not see as an investment as
such, since that money spent never
returns to the company. for example: rent,
staff salaries and public services.
 VARIABLE EXPENSES
Are those that are directly related to the
volume of production in such a way that, as
the units produced increase, expenditures
also increase, it's about
-Fees for using a phone in case of credit
cards, paypal for online sales, the platform
of your online store, etc.
 FIXED EXPENSES
Do not depend to the volume of production/sales.
Some of these expenses will be recurring such as
rent or social security expenses, but there will be
other fixed expenses that will be on time such as
repairs and conversation it's about.
-Insursance: insurance premiums related to the
activity (the insurance of the premises, that of the
delivery van, the liability van, etc.)
ANT EXPENSES
Consists of the purchase of small items
that if it becomes more frequent can
generate great losses for the company,
although it is also applicable to household
expenses.
 UNFORESEEN EXPENSES
Are those that escape to the day to day of our
business, some expenses that could not be
foreseen. Their origin is in unexpected reasons,
and although there are those who associate them
with bad management or planning in the vast
majority of cases are due to bad luck, not lack of
foresight.
 FINANCIAL EXPENSES
They are all those generated by external
resources, such as interest paid to the bank for
a loan or other financing. we take into account
the purchase of checkbooks, the payment of
loans and the amount.
WHAT IS A COST?
The cost is everything I need to produce
and deliver goods and services, it is the
raw material.
PRODUCTION COSTS
These are all those costs that arise after
creating or buying the product we are
selling, from this originate about three
categories to divide the costs: raw
material, labor, indirect manufacturing
costs
 DISTRIBUTION COST
Distribution costs are all the expenses incurred by a
producer to deliver their products, from their
manufacturing plant to the place where they are
acquired
Main aspects
1. Create the demand
2. Get order
3. Product handling and delivery
4. Sales control
 ADMINISTATIVE COST
Administrative costs are the resources
necessary for operations and management within
a company, they are the expenses or costs that
the company applies to carry out internal
procedures and movements.
For this, it is necessary to separate the different
costs, and the costs that remain to be accounted
for are the Administrative costs.
THANKS