COSTS, EXPENSES AND PAYMENTS-CONCEPTUAL APPROACHES

In the literature there are many approaches regarding the notion of cost and expense. The approaches are varied and complex. Very often both expressions are used as synonyms, or in the definition of expenses and cost appear. It should be clarified what is the connection between the two. Which was bo...

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Bibliographic Details
Published in:Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie 2016-12, Vol.1 (6), p.58-64
Main Author: FÜLÖP ÁRPÁD-ZOLTÁN
Format: Article
Language:English
Subjects:
Costs
expenses
financial accounting
managerial accounting
Online Access:Get full text
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Summary:In the literature there are many approaches regarding the notion of cost and expense. The approaches are varied and complex. Very often both expressions are used as synonyms, or in the definition of expenses and cost appear. It should be clarified what is the connection between the two. Which was born first, cost or expense? The cost is very clearly tied to the production of tangible and intangible assets and the default cost accounting (managerial accounting) and expense relates to incomes and hence of financial accounting. In my understanding the cost is preceding expense. It is imperative to clarify these issues both theoretically and practically. I decided to clarify these issues in this article, as it fallows.
ISSN:1844-7007
1844-7007