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Ah, cost is the amount to produce and price is the amount to consume then? I never actively tagged those ideas with distinct words, but I appreciate the insight
by jjice 3y ago
Ah, cost is the amount to produce and price is the amount to consume then? I never actively tagged those ideas with distinct words, but I appreciate the insight.
- hef19898 3y agoWelcome!
- s1artibartfast 3y agoThis isnt a universal definition, just how they are using it.
- jjice 3y agoFor sure, I just found it to be an interesting lens to view that though.
- Gormo 3y agoUsing "cost" to refer to the amount you pay for something and "price" for the amount you get for selling it is pretty standard usage, especially in accounting contexts.
- s1artibartfast 3y agoYes, But "cost" is relative to who is paying. It certainly isnt "cost is the amount to produce", as stated upthread. The cost to a consumer purchasing a burger is the retail price, not the amounts the restaurant spent on labor and ingredients.
- hef19898 3y agoCost is on the producers side, peice is whatever the product can be sold for. Value is depending on circumstances, accounting value on the other hand is pretty well defined, and either based on cost (inventory at the manufacturer) or purchasing price (inventory and assets on customer side).
- s1artibartfast 3y agoI think the term cost can only be specified with respect to an entity. A given good has multiple cost, up and down the supply chain. A widget can have different costs to the original manufacturer, the wholesaler, retailer, and finally consumer. It makes no sense to say the cost of a widget is X, without specifying cost to whom.