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Abstract: in practice, people often confuse, costs, expenses and losses. But, according to the requirements of economic work and accounting, costs, expenses and losses between both closely linked, there are also differences between the two. If the spending, cost is equal to the cost, can affect the cost index, objectivity and relevance and influence of current and future periods of product cost and enterprise profit and loss calculation, etc., resulting in serious consequences of the accounting information distortion. Only a correct understanding of accounting concepts system, costs, expenses and losses in the connotation and the mutual relationship, can help to reasonably calculate the cost, expenses, profit, such as the indicators, and to provide investment decision for the enterprise managers, technical and management decisions. Due to the

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