The difference between cost and expense in accounting primarily boils down to timing and purpose in relation to Accounting Services in Buffalo. While both represent a monetary outlay, their treatment on a company's financial statements differs significantly.The factory equipment (the initial Cost) will be gradually turned into an Expense over its useful life through Depreciation. Each year, a portion of the original cost is recorded as Depreciation Expense on the Income Statement, reflecting the equipment's use for that year's production of revenue.