Cost and revenue are common words in everyday use. You can also express it as expenses and income.
Cost refers to the outgoing money that reduces my assets. Whatever you buy, enjoy, or make a purchase, this is a cost.
It's like an axis of evil that usually has to be controlled and reduced costs in household account books, but in fact, costs are not just bad guys because they contribute to improving the quality of life. Like the saying,'I want to live far away and make money', all of my assets have to be used in the end to meet my happiness.
What we need to care about is not that we don't just use it, but rather manage it so that we can feel the greatest happiness at a minimum cost.
*Revenue is money coming in from the outside, which increases my assets as opposed to cost. If you earn a salary or generate sales through your business, this is a profit.
In fact, to be precise, profit does not just come in, it is a result of my time, ability, investment cost, etc., but anyway, if it is converted into money through added value, it is profit.
Net profit or loss is the amount earned within a specified period minus expenses. Of course, the bigger the better, the better, and the minus means that you spend more money than you earned within the period. This is a conceptual figure, so no separate item setting is required.