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In a very brief, prcise wording and as most textbooks are define;
Cost:is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore.
Whereas,
Loss: Is the fact of no longer having something or having less of it than before and in business it means decrease on the organization's equity.
Cost is an expense for the benefit of the economic entity
Loss is an expense that does not benefit the economic entity as a result of error planning
The fundamental diffeerence is that cost is incurred during business activities while loss is the result of activities where cost outstripes revenue that is TR>TC.
I think , the cost of prpducing certain product can be compensatd before finalizing the commercial process , while the loss is unlike and can not be compensated as the loss or gain is the final step in any / each and every commercial process .
Thnaking you.
Cost : Amount to be paid for finish goods.
Loss: Unrecoverable amount from cost of finish goods is called loss:
Example: If we produce one mobile set in $ 50 but due to some reasons that may political instability or our competitor strategy the prices goes fall and the mobile set which was produce in $ 50 not sell in the market on the fix price and sale out in $47 the difference of $50 to $47 is loss i.e. $3.
Cost of product is an element of its price as the Price= Total Costs +profit margin
Loss occur when the product is sold by a price under its costs
The differences between the losses and the cost can be noted in the following rows:
1-Costs are always declining assets
2-Costs are incurred through the activities of a company
3-Costs are spent on sales
4-But losses are the result of an increase in costs on income
5-Losses mean that your activity has led to losses and should be provided by investors.
6-Losses on equity are losses.
Ultimately, the impact of costs is in the form of profit and the effect of losses on equity.
"Cost" is the expense incurred by an entity in its revenue earning activities e.g. purchases, overheads, whereas;
"Loss" is a decrease in profits/ revenue due to some incidental event/ factor other than any revenue earning activity e.g. loss on sale of fixed assets.
An expense is a cost used in earning revenue in a company main operation. some of the example expense include advertising expense, commission expense, rent expense, cost of goods sold and salaries expenses etc. Expenses also include costs used up during accounting periods such as interest expense, insurance expense, and depreciation expense.
A loss is associated with a peripheral or incidental transaction. Example losses include the loss of on sales asset used in business, loss from a lawsuit settlement, loss from retirement of bonds. However, there are some losses of closure for operations. Such as loss on write-down of inventory from the cost of the market.
