Expenses, costs and payments are often used interchangeably as an expression of money leaving the company. However, conceptually there is a small difference.
- An expense occurs when you acquire a product whether it is for resale, for production or for own consumption.
- A payment takes place when you pay for the product.
- A cost occurs when you consume the product, ie. when you sell it, when you use it for production or when you use it for own consumption.
tracezilla makes it easy to keep track of expenses and costs related to the trade and production of food.