Author Topic: Difference between cost and price.  (Read 409 times)

Offline Repon

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Difference between cost and price.
« on: July 08, 2015, 01:51:01 PM »
What is the difference between cost and price?

Some people use cost and price interchangeably. Others use the term cost to mean one component of a product's selling price. Even the same person might use the terms differently.

For example, in standard costing the price variance of the raw materials refers to the difference between the standard cost and the actual cost of the materials.

In other situations we define a product's selling price as: product costs + expenses + profit.

As these two examples indicate, there can be different meanings for the terms cost and price.
Senior Lecturer in Accounting
Department of Business Administration
Faculty of Business & Economics
Daffodil International University

Offline mominur

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Re: Difference between cost and price.
« Reply #1 on: July 08, 2015, 02:35:46 PM »
Nice post...
Md. Mominur Rahman

Assistant Professor
Department of Textile Engineering
Faculty of Engineering
Daffodil International University

Offline asitrony

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Re: Difference between cost and price.
« Reply #2 on: July 08, 2015, 05:22:59 PM »
Very good topic sir!

Thanks for sharing ...

Offline kamruzzaman.bba

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Re: Difference between cost and price.
« Reply #3 on: July 09, 2015, 11:36:31 AM »
Thanks :)
Md. Kamruzzaman Didar
Sr. Lecturer, Department of Business Administration
Faculty of Business & Entrepreneurship

Offline Repon

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Re: Difference between cost and price.
« Reply #4 on: July 09, 2015, 12:53:35 PM »
Thank you all for your inspiring comments!
Senior Lecturer in Accounting
Department of Business Administration
Faculty of Business & Economics
Daffodil International University