Distinguish between costs and expenses.

A.

"Expenses" are sacrifices or giving up of resources for a particular purpose. "Costs" are anything for which decision makers desire a separate measurement of costs.

B.

"Expenses" are sacrifices or giving up of resources for a particular purpose. "Costs" denote all costs deducted from (matched against) revenues in a given period.

C.

"Expenses" are costs that accountants can identify specifically and exclusively with a given cost object in an economically feasible way. "Costs" is a sacrifice or giving up of resources for a particular purpose.

D.

"Expenses" denote all costs deducted from (matched against) revenues in a given period. "Costs" is a much broader term; for example, "cost" is used to describe an asset (the cost of inventory) and an expense (the cost of goods sold).