Price vs Cost: What's the Difference?
What's the Difference?
Price refers to the amount set by the seller, while cost refers to the amount paid or incurred for something.
Memory Tip: Price = seller's tag, Cost = buyer's cash
Price has long /ai/, Cost has short /o/
price /praɪs/
nounThe price is how much money you need to pay for something.
Example:
The price of the new jacket is too high, so I'm going to wait for a sale.
Common patterns:
price increase
price range
price tag
price
verbTo price something means to determine or set the amount of money required to purchase it.
Example:
The price of the new jacket is too high, so I'm going to wait for a sale.
Common patterns:
price a product
price competitively
price at a premium
cost /kɔst/
verbTo cost means to have a price.
Example:
The new shoes cost fifty dollars, so I need to save some money to buy them.
Common patterns:
cost a fortune
cost money
cost an arm and a leg
Common Mistakes
The cost of the new phone is $799.
The price of the new phone is $799.
Price is the amount the seller asks for the phone.
The price of manufacturing the car was higher than expected.
The cost of manufacturing the car was higher than expected.
Cost refers to the expenses incurred to produce the car.
Quick Practice
0/3 correct1. The ____ of the new jacket is too high, so I'm going to wait for a sale.
2. The ____ of the new jacket is too high, so I'm going to wait for a sale.
3. The new shoes ____ fifty dollars, so I need to save some money to buy them.
Other Confusing Words
Never confuse price / cost again
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