Question

Differentiate between expired and unexpired costs.

Answer 1

	Basis of Distinction	Expired Costs	Unexpired Costs
1.	Expiry	These costs are consumed or used up in the current accounting year.	These costs were not fully consumed or used in the current accounting year.
2.	Benefits	The benefits of these costs do not accrue in the future.	The benefits of these costs accrue in the future.
3.	Examples	Factory rent, wages.	Advertising expenses, preliminary expenses.