Brendan is a new business owner, and when setting up his accounting system, he became confused and asked you to explain technical concepts relating to expenses. Which of the following is false regarding expenses and costs in his business?

• Costs are the expenses incurred to run the business.
• Expenses are the monetary value of resources required to produce a product or service.
• Costs are the recurring expenses that a business incurs to keep its operations running.
• Expenses are directly related to the production of a product or service.