What is diff between cost and price

Question

Accepted Answer

Cost is the expense incurred in producing a product or service, while price is the amount charged for that product or service.

Cost is the sum of all expenses incurred in producing a product or service, including materials, labor, and overhead costs.
Price is the amount charged to the customer for that product or service, which includes the cost of production plus a profit margin.
Cost is an internal measure used by companies to determine profitability, while price is an external measure that reflects market demand and competition.
For example, the cost of producing a car may be $20,000, but the price charged to the customer may be $30,000 to account for profit and market demand.
Understanding the difference between cost and price is important for effective cost control and pricing strategies.

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