Operating Cost

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Definitions

Deferred Debit (Deferred Asset; Deferred Expense)

Deferred Debit Deferred Asset Deferred Expense Accruals Concept Expenditure Future Income Operating Cost Accounting Period

An item of expenditure incurred in an accounting period but, under the accruals concept, not matched with the income it will generate. Instead of being treated as an operating cost for that period, it is treated as an asset with the intention of treating it as an operating cost to be charged against the income it will generate in a future period.