Price and cost are two terms that may seem similar due to their related meanings, but they are different in their implications. Price refers to the amount of money or goods that a product or service is bought or sold for, and can be understood as the value or worth of a product or service. Cost, on the other hand, refers to the expenses involved in producing a product or service, and these costs ultimately determine the price of a product or service. Therefore, price can be considered a subset of cost, with the price of a product being determined by factors such as manufacturing expenses, electricity bills, and salaries paid to production staff.
### Key Takeaways
– Price refers to the amount of money or goods for which a product or service is bought or sold, and represents the value or worth of a product or service.
– Cost refers to the expenses involved in producing a product or service, and these costs ultimately determine the price of a product or service.
– Price can be considered a subset of cost, with the price of a product being determined by factors such as manufacturing expenses, electricity bills, and salaries paid to production staff.
