A-Z Popular Blog Pricing Search »
Related Guides

Cost vs Price | 3 Key Differences

Cost is the amount of money paid to produce or buy a product or service. Price is the amount of money paid in a transaction. The following are key differences between these terms.

Accounting or Marketing

Cost is an accounting term and price is a marketing term.

Expenses or Transaction

Cost often includes a series of expenses while price refers to the one-time amount of a purchase transaction.

Seller or Buyer

The cost of the seller is the cost of producing and marketing a good. The cost of the buyer is the price.
Applies To
Series of expenses
Transactional amount
The money paid to produce and market a good.
The amount of money listed on an offer to customers or the amount of money received in a sale. These are list price and sale price respectively.
Another word for price paid.
The amount of money paid to purchase an item.

Related Terms

List Price
The price listed on a marketing offer.
Sale Price
The price actually paid after discounts.
Unit Cost
The all-in cost of the producer to create a single product. This is essentially a more accurate term for cost from the perspective of the producer.
Lifetime Cost
The all-in cost of the buyer to own a good. This includes the purchase cost and all costs related to operating, maintaining and disposing an item. For example, the lifetime cost of an air conditioner would include all electricity it consumes over its entire lifespan discounted to present value.


This is the complete list of articles we have written about pricing.
Algorithmic Pricing
Bargaining Power
Benchmark Price
Price Fixing
Cost-plus Pricing
Price Gouging
Customary Pricing
Decoy Effect
Everyday Low Price
Marginal Utility
Willingness To Pay
Dynamic Pricing
High-Low Pricing
Market Value
Flat Pricing
Loss Leader
Predatory Pricing
Price Discrimination
Snob Effect
Market Price
Price Competition
Price Leadership
Premium Pricing
Price Economics
Price War
Revenue Management
Veblen Goods
Price Floor
Price Promotion
Price Sensitivity
Price Skimming
Price Umbrella
Pricing Power
Pricing Strategy
Sticky Prices
Value For Money
More ...
If you enjoyed this page, please consider bookmarking Simplicable.


The common types of pricing.

Price Competition

The common types of price competition.


The definition of supply with examples.


The common types of shrinkflation.


The five common definitions of value with an example.

Value vs Price

The difference between value and price with examples.


The common types of price.

Price Signal

The definition of price signal marketing with examples.

À La Carte

The definition of à la carte with examples.

Business Costs

A list of common types of business cost.

Cost Goals

An overview of cost goals with examples.

Cost Cutting

The common types of cost cutting with examples.


The definition of tangible with examples.

Cost Risk

The definition of cost risk with examples.


An overview of the common types of taxes.

Employee Costs

The total costs of employing someone.

Travel Expenses

A list of common travel expenses.

Capital Expenditures

The definition of capital expenditure with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map