Inventory
Selling price versus cost price
Understand the difference between what you charge customers and what the item costs your business.
Selling price and cost price are different and both can be useful.
Selling price
- The amount you charge the customer for the item.
Cost price
- The amount the business paid to buy or produce the item.
Why it matters
- Comparing selling price and cost price helps estimate margin and understand whether an item is profitable.
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