Cost is a term that is very often equated today with the terms consumption, expenditure and expenditure. The payment is primarily focused on the movement of money between natural and legal persons, ie between economic entities. It can be said that disbursement is a name used to expend money from the treasury through a treasury receipt. The term expenditure itself has a slightly broader meaning and encompasses any individual movement of money or material goods and services. Furthermore, the term expenditure primarily characterizes any form of spending, losing or destroying monetary goods. Since it is created by the act of records, it is therefore primarily an accounting category, while costs are primarily considered operating expenses that are included in the price of products and prices of services. In other words, it can be said that costs represent a kind of utilization of resources. As a large number of accounting theorists have sought to provide as clear a definition of costs as possible, various cost classification criteria have emerged as a result. Consequently, costs can be divided according to the time of occurrence, according to functions, according to the position in the financial statements, according to the possibility of coverage by holders, according to the behavior to change activities, according to the significance for business decisions, and according to control. An important role within each company is played by knowledge of costs, their analysis and commitment to cost management without which the organization can not achieve the desired results. In order for a certain organization to be competitive on the market, it is certainly important to consider the justification of the costs incurred due to the achievement of the organization's goals. Ricardo d. o. o. Is one of the largest road carriers in Croatia, and the activity they are engaged in is primarily focused on warehousing, transport and distribution. Based on the analyzed business, a decrease in revenues and expenditures in 2018 is visible, which did not project negative effects on the final financial result, as the company made higher net profit.