Difference between price and cost
Price and cost are two words which are used as synonyms without realizing the different between the two words. Price and cost are two different words which are meant to be used appropriately.
Price is essentially the worth of a product or a service and you pay for the worth of the item you are buying. For example, the price of this pearl set is too high. Price is also used when we talk about something that deserves to be sacrificed for getting something more important that what is sacrificed. For example, you need to pay the price for the facility that you get. You can find the use of this word in betting and auctions as well.
When we talk about the word cost then we not only talk about the value of the product but we include other expenses involved in buying a product or service. The cost determines the price of a product. Price is can be understood as the subset of cost because it cannot determine the cost.
To understand it in a better way let us take an example. When you consider the cost of a product it will include the entire cost involved in the manufacturing and production of that product including the salary of the employees, electricity, raw material etc. There are certain fixed costs while others are variable. Variable costs are indefinite while fixed costs do not change easily.