Cost is typically the expense incurred for making a product or service that is sold by a company. Price is the amount a customer is willing to pay for a product or service. The cost of producing a product has a direct impact on both the price of the product and the profit earned from its sale.

Here are some primary differences between cost and price: Price refers to the amount of money paid for the products or services acquired. Cost is the expenses incurred when producing the product. The same price applies to all customers or consumers. Similarly, the cost is the same for all customers.

Cost refers to the amount of money spent on different activities to make or maintain service or product. In contrast, Price, as told earlier, implies future acquisitions of the service or product. Both refer to the element of the money. In price, the use of money is to gain something.