Explain Cost, Price, Value

Cost

The expenditure of charges incurred in terms of quantitative as well as qualitative labour and capital for productions of a commodity are termed as costs of the commodity.

Cost means the original cost of construction and can be known after according day to day expenditure from the very planning stage till the construction is completed.

Price

This is an amount worked out adding the cost of production, interest on investment, reward to the producer for his labour and risk.

The term price is used to indicate the cost of commodity plus profit of manufacturer.

Value

The power which an article or a commodity of utility and in limited quantity possesses of getting itself exchanged for other commodity is called the value.

Value means it’s worth and utility.

Value varies time to time and it depends largely on the supply of that particular type of property and extends of the demand for it.

The value mainly depends on

1. Utility

2. Scarcity

3. Events