In running a business, an entrepreneur will always be involved in spending money, whether directly or indirectly. For this reason, it is important for an entrepreneur to be able to differentiate between costs and expenses so that it will be easier for him to make financial statements both for control and for tax reporting. In the income statement we will easily differentiate between costs and expenses, because both have different positions, we also often encounter costs of goods sold, factor overhead costs, labor costs, etc. Meanwhile, we can find expenses in administrative expenses, salary expenses, marketing expenses, etc.
