Comparison between Price, Cost and Value

Price can be understood as the money or amount to be paid, in order to get something. Cost is the amount incurred in the production of goods, i.e. it is the money value of the resources involved in producing something. Conversely, value implies the utility of worth of the commodity of service for an individual.

A market is a place where millions of products and services offered for sale to the public, which are different size, shape, color, nature, functioning, and many other respects. The first thing that comes to our mind, whenever we go and buy a product is, what is the price of the good or service? How much does it cost? What is its value for us? There are slight and subtle differences between price, cost, and value, which is important to learn.

Comparison between Price, Cost and Value:

Comparison Basis	Price	Cost	Value
Meaning	Price is the amount paid for acquiring any product or service.	Cost is the amount incurred in producing and maintaining something.	Value is the utility of a good or service.
Ascertainment	Price is ascertained from the consumer's perspective.	Cost is ascertained from the producer's perspective.	Value is ascertained from the user's perspective.
Estimation	Through Policy	Through Fact	Through Opinion
Impact of variations in market	Prices of product increase or decrease.	Cost of inputs rise or fall.	Value remains unchanged.
Money	It can be calculated in terms of money.	It can also be calculated in monetary terms.	It is not calculated in terms of money.