Question

What is the difference between marked price and cost price ?

Answer 1

Confused between marked price , selling price , cost price. By selling an article at 20% discount off the marked price , a shop keeper still makes 10% profit on his cost . ... From my understanding of the definition, marked price and cost price must be the same then? But it's not the same , so what's the difference ?

Answer 2

DIFFERENCE BETWEEN MARKED PRICE AND COST PRICE
cost price of a particular product or commodity is the amount of expenditure incurred to either purchase that particular product or manufacture that particular product. In other words cost price includes all the expenses incurred until the product or commodity is said to be owned by us. It is the cost of buying a particular product. whereas, 

Market price is the current price of a particular commodity. It may be more or less than the cost price. In other words, it is the price at which a product or commodity can be sold currently.

For example, A man had purchased a plot of land at a price of Rs.25000 some 10 years ago and the price of that particular plot at present is Rs.100000. For him, the cost price of the land is Rs.25000 and market price is Rs.100000.

Another example, If a firm manufactures goods at a cost of Rs. 5/unit and the current value of the goods in market is Rs. 6/unit, Rs. 5 is the cost price of the firm and Rs.6 is the marker price.


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